Employer of Record for Massachusetts

In Massachusetts, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level.  As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Massachusetts.

Do I need an EIN or Payroll Tax Number to Employ in Massachusetts

Employers in Massachusetts are required to have both a Federal Employer Identification Number (EIN) and a Massachusetts payroll tax number to hire employees and manage payroll. This enables them to comply with federal and state payroll tax obligations.

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Working Hours in Massachusetts

Massachusetts law does not set a specific standard for full-time employment hours, which are determined based on federal guidelines. 

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What Is Considered Full-Time Employment in Massachusetts

There is no legal definition of "full-time" employment in Massachusetts. However, full-time employees work 35-40 hours per week. Employers are required to provide a 30-minute break to employees who work more than six consecutive hours.

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Probation Period in Massachusetts

A probationary period is not required for private-sector employees.

Minimum Wage in Massachusetts 

• The minimum wage in Massachusetts is $15 per hour. Employees who receive tips must be paid a minimum of $6.75 per hour, provided that their tips bring their total earnings to at least $15 per hour.

• Good to know: In the November 2024 election, Massachusetts voters will consider a ballot measure to gradually raise the tipped minimum wage to match the standard minimum wage by 2029. The measure also includes provisions for tip pooling across all employees.

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Massachusetts Anti-Discrimination Laws

Massachusetts law prohibits employers from discriminating against employees or applicants based on specific protected characteristics. These protections cover hiring, firing, promotions, and other employment terms. Protected categories include:

• Race and Color
• Religious Beliefs
• National Origin or Ancestry
• Sex, Gender Identity, and Sexual Orientation
• Age (for individuals 40 and older)
• Disability (physical or mental impairment that substantially limits major life activities)
• Marital Status
• Military Status (including veteran status)
• Genetic Information

Employers must provide reasonable accommodations for employees’ religious practices and disabilities unless doing so would impose an undue hardship on business operations.

Employers are required to pay hourly, nonexempt employees on a weekly or biweekly basis. Salaried, exempt employees may be paid on a semi-monthly basis. With limited exceptions, only exempt employees may choose, if they prefer, to be paid monthly.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Massachusetts . Understanding the tax obligations for both employers and employees is crucial when operating in [state's] business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Massachusetts. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

These contributions include:

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Employee Payroll Tax Contributions

These contributions include:

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Tax Due Dates in Massachusetts 

In Massachusetts, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.

Employers in Massachusetts must comply with specific benefit requirements, particularly around health insurance, sick leave, and workers’ compensation. While not all benefits are mandatory, certain benefits are required by state law.

As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Massachusetts 

Competitive benefits are essential for attracting and retaining top talent in Massachusetts. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Massachusetts packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

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Are Employers Required To Provide Health Insurance in Massachusetts

Employers are not required by Massachusetts law to provide health insurance to employees, but they may face penalties under federal laws, such as the Affordable Care Act, if they do not offer coverage and have 50 or more full-time employees. For companies that offer health insurance, Massachusetts mandates that coverage meet minimum creditable coverage standards to avoid state penalties for employees.

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Do Part-Time Employees Get Benefits in Massachusetts

Yes, part-time employees are entitled to certain benefits, including sick leave and workers’ compensation:

• Sick Leave: Under the Massachusetts Paid Sick Leave Law, all employees, including part-time workers, accrue sick leave.
• Workers’ Compensation: Massachusetts law requires workers’ compensation coverage for all employees, regardless of employment status or hours worked.

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Are Employers Required To Offer 401k in Massachusetts

No, Massachusetts does not mandate that employers offer a 401(k) retirement plan. Employers may voluntarily offer additional retirement plans, such as 401(k)s or other options, to remain competitive in the job market.

• Good to know: Massachusetts has implemented the CORE Plan, specifically designed for small nonprofit organizations with 20 or fewer employees. The CORE Plan is a state-managed multiple employer 401(k) plan that allows eligible nonprofits to provide retirement benefits without the administrative burden of a private 401(k) plan.

Is Vacation Leave Mandatory in Massachusetts?

Massachusetts law does not require employers to offer either paid or unpaid vacation leave. However, if an employer chooses to provide vacation as a benefit, it must treat accrued vacation as earned wages. This means that any accrued, unused vacation time must be paid out upon termination of employment. Employers must also adhere to their own written vacation policies and cannot arbitrarily deny employees the right to use accrued leave.

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Mandatory Leave Policies in Massachusetts 

Below are the mandatory leave entitlements for full-time employees in Massachusetts.

Paid Time Off In Massachusetts 

Massachusetts does not mandate general Paid Time Off (PTO) policies for vacation or personal days, leaving it to the discretion of employers. If an employer offers PTO, any accrued but unused vacation time must be paid out upon termination, as the state considers accrued vacation time as earned wages. Employers must adhere to their own written policies regarding PTO.

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Maternity Leave In Massachusetts 

Massachusetts provides maternity leave under the Paid Family and Medical Leave (PFML) program. Eligible employees can receive up to 12 weeks of paid leave to bond with a new child, including through birth, adoption, or foster placement. PFML benefits are funded through employer and employee contributions, and the amount paid is a percentage of the employee's average weekly wage, subject to a cap.

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Paternity Leave In Massachusetts 

Paternity leave is also covered under the PFML program, allowing eligible employees to take up to 12 weeks of paid leave for bonding with a new child. The leave applies equally to both parents and is funded similarly to maternity leave. Eligible employees receive partial wage replacement based on a percentage of their average weekly wage.

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Sick Leave In Massachusetts 

Under the Earned Sick Time Law, all Massachusetts employees are entitled to sick leave. Employees accrue 1 hour of sick leave for every 30 hours worked, up to a maximum of 40 hours per year. Employers with 11 or more employees must provide paid sick leave, while smaller employers may offer it as unpaid. Sick leave can be used for the employee's or a family member's illness, medical appointments, or domestic violence recovery.

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Military Leave in Massachusetts 

Massachusetts follows the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), which requires employers to provide job-protected leave for employees who serve in the military. Under this law, employees returning from service are entitled to reinstatement in their previous position or a comparable one. Massachusetts law reinforces these protections, ensuring no penalties or loss of benefits for employees on military duty.

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Jury Duty in Massachusetts 

Massachusetts law requires employers to provide leave for jury duty service, prohibiting penalties or retaliation against employees fulfilling this civic duty. The first three days of jury duty are paid by the employer; any additional days may be unpaid. Employees cannot be terminated or penalized for serving on a jury.

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Parental Leave In Massachusetts 

Under PFML, Massachusetts provides 12 weeks of paid parental leave for bonding with a new child, covering both mothers and fathers. Additionally, the Massachusetts Parental Leave Act (MPLA) requires employers with six or more employees to offer 8 weeks of unpaid leave for the birth or adoption of a child. If both parents work for the same employer, they may share the 8-week leave under MPLA.

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Small Necessities Leave in Massachusetts

Massachusetts offers Small Necessities Leave, granting employees up to 24 hours of unpaid leave per year for family-related obligations, including attending school activities or medical appointments for family members. This leave is available to employees working for companies with 50 or more employees and is in addition to PFML and sick leave.

When it comes to terminating employment in Massachusetts, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Massachusetts 

Massachusetts follows an "at-will" employment policy, which means employers can terminate employees at any time and for any reason, as long as it is not an illegal reason (such as discrimination or retaliation). This policy allows both employers and employees to end the employment relationship without advance notice or justification, although certain exceptions and protections apply under federal and state law.

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Notice Period in Massachusetts 

Massachusetts does not have a legal requirement for employers to provide a notice period before termination. Employers may terminate an employee without giving advance notice, though some employers may choose to include notice requirements in employment contracts or company policies.

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Severance in Massachusetts 

There is no requirement for employers to provide severance pay in Massachusetts. Severance is only required if it is specified in an employment contract or company policy. Many employers choose to offer severance packages as a gesture of goodwill or to secure a release of claims from the departing employee.