Massachusetts registration and tax info

• Massachusetts Department of Revenue (DOR) – income tax withholding and paid family medical leave
  • Accessed through the Commonwealth of Massachusetts
• Department of Unemployment Assistance – unemployment tax and EMAC

For help getting your business started in Massachusetts, try these business resources.

Companies pay business taxes to the Department of Revenue through MassTaxConnect. When you register, you'll also be able to register for Paid Family and Medical Leave (PFML).

Register for withholding tax and PFML

1. Learn what you need to register your business with MassTaxConnect.
   • If you already have a MassTaxConnect account, learn how to add withholding and PFML below. 
   • If you already have a MA withholding account that starts with “WTH”, but you haven't had recent payrolls in Massachusetts, you may need to reactivate your account. Call the Department of Revenue. at (617) 887-6367, Option 4.
2. Select the most applicable option from the table of contents.
   • The agency has step-by-step instructions, screenshots, and video tutorials (in some cases) to help guide you.
3. You'll create a MassTaxConnect account.
4. Under "New to MassTaxConnect", click Sign up. 
5. Click Register a Business. 
   • If you need help, call the Department of Revenue at (617) 887-6367.
6. Click Next, and follow the rest of the prompts to register for both:
   • Employer withholding
     • The DOR accepts using both your Federal Employer Identification Number (FEIN) and another format (WTH-000...) to register.
   • Paid Family and Medical Leave (PFML).
7. Give Gusto the third-party access (TPA) we need to pay and file your taxes.

After you register, you'll get your:

• Account ID, and;
• Filing frequency (tax deposit schedule). 
  • These are assigned to your company by the agency.

Add withholding tax or PFML to a preexisting MassTaxConnect account

1. Sign in to your MassTaxConnect account.
2. Under the "I want to" section, click the hyperlink Add an account type/new location.
3. All tax types available will be listed. If not already selected, select both:
   • Employer Withholding tax
   • Paid Family and Medical Leave

Enter the tax account information in Gusto

After a work address in Massachusetts is assigned to one or more employees, you can add your tax account information:

1. Sign in to Gusto.
2. Go to the Taxes & compliance section and select Tax setup.
3. Scroll to "Massachusetts Tax Setup", and click Manage taxes.
4. Next to "Withholding Account ID", click Edit and enter your account ID. 
5. Next to "Paid Family and Medical Leave Account ID", click Edit and enter that ID. 
   • Example: PFM-000…
6. Next to "Required to pay PFML employer portion?", click Edit. Choose one of the options.
   • All employers with 25 or more employees (including W-2 employees and 1099 contractors) in MA are subject to the employer portion of this tax. Not sure? Visit the MA PFML calculator. You can edit your selection until Mar 31 each year.
   • The options:
     • Yes, I'm liable for the employer portion of MA PFML effective Jan 1, 202X.
     • No, I am not liable for the employer portion of MA PFML effective Jan 1, 202X.
7. Next to "PFML employee portion paid by employer", click Edit and tell us if you want to pay some or all of the employee contribution amount for your employees.
   • Enter a whole number between 0 and 100%.
8. Next to “Filing Frequency” click Edit and tell us what frequency the agency assigned you. If you do not know it yet, choose weekly (the fastest option), and then update it once it's assigned.
   • Weekly
   • Monthly
   • Quarterly
   • Annually
9. Fill in any missing tax account details as soon as you get them.

Most companies are required to pay Massachusetts unemployment insurance tax once the company has:

• Paid $1500 in wages during a calendar quarter or;
• Had one or more employees working on a permanent, temporary, or part-time basis, on 1 or more days in each of 13 weeks during a calendar year.

Your business type (general, non-profit, etc) can impact when the company is responsible for paying this tax. We recommend contacting the agency to confirm when the company will be liable.

Running payroll in Gusto before you're required to pay unemployment tax

If you need to run payroll and do not yet meet the above requirements, Gusto allows it. Enter the "new employer rate" for Massachusetts in Gusto for now, and update the rate once you get it.

Register for state unemployment insurance tax

The Department of Unemployment Assistance has a step-by-step registration guide for you to use. 

1. Start on the Unemployment Services for Employers homepage. 
2. Scroll to the “Online registration” panel, and click Register your Business.
3. Enter some company info, like:
   • Federal Employer Identification Number (FEIN)
   • User role
   • Initial liability questions
   • Business information, attributes, and addresses
   • Etc
4. When you've filled out all prompts, submit the registration.
   • For most employers, registration is processed immediately. You'll get an email with instructions on how to set up your web login through a single sign-on. You'll also get your:
     • Unemployment account number
     • Unemployment contribution rate
     • [If applicable] COVID-19 Recovery Assessment Tax (RAT) rate
   • For some employers (ex. 501c3, religious employers, etc), registration will go through an internal review first.
5. Enter the tax information you get in Gusto. Learn how below.
6. Do not forget to give Gusto third-party authorization for this agency so we can pay and file your taxes.

Enter the tax account information in Gusto

After a work address in Massachusetts is assigned to one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Massachusetts Tax Setup" headline and select Manage taxes.
3. Next to "Unemployment Insurance Account Number", click Edit and enter your number. The account number is eight (8) digits long.
   
   • The number will appear on forms as “XXXXXXXX”. Enter it in Gusto, even if the field is formatted with dashes in between some numerals.
   • If your account number is shorter than eight digits, add leading zeros.
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
4. Next to "UI contribution rate", click Edit and enter your unemployment tax (or contribution) rate. Do not include:
   • The Workforce Training Rate or
   • The COVID Recovery Assessment Rate
     • This will be entered separately.
   • If you do not have your assigned rate yet, enter the new employer rate for Massachusetts in Gusto in the meantime.
     • Update the rate once you get it.
5. Next to "COVID-19 Recovery Assessment Tax (RAT) rate", click Edit.
   • This tax helps keep employer rates low after COVID-19 impacted unemployment funds. Here are some key details:
     • Rate: View the rate range for 2025 here.
     • Applies to new employers (non-construction and construction) for the first 3 years after getting a new UI rate.
     • Added on top of standard unemployment contribution rates. To reduce its impact, the agency recalculated the standard contribution rates.
     • In effect since Jan 1, 2021.

If you do not know your account numbers or rates, call the agency at (617) 626-5075.  

Massachusetts Employer Medical Assistance Contribution (EMAC)

Massachusetts (EMAC) is an additional contribution that some Massachusetts employers must pay. Check if your company is subject to EMAC here.

The company is exempt

Your company is exempt from paying the EMAC if you’ve been an employer for three years or less*. If you've been an employer in Massachusetts for three years or less, you can set your exemption in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Next to "Employer Medical Assistance Contribution", click Edit.
4. Select Exempt.

*Heads up: MA also exempts companies with an average of less than six employees. Gusto will check if you have more than six employees at the end of each quarter and calculate the tax if applicable. Do not apply an exemption in the now if you've been in business for longer than three years, but have fewer than six employees—we've got you covered. 

The company is not exempt/subject

Once you've been an employer in Massachusetts for three years, you may be subject to the tax.

You can update your status in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Next to "Employer Medical Assistance Contribution", click Edit.
4. Select Not exempt.
5. Select your EMAC rate.
   • Find the EMAC rate on the "Notice of Employer's Unemployment Insurance Rate" you get annually from the Department of Unemployment Assistance.
   • If you do not know your EMAC rate, call the agency at (617) 626-5075.

Withholding account ID

Gusto needs your MA “Withholding Account ID” to file on your behalf. The account number has the following format, “WTH-########-###”.

• Reminder: The agency used to accept either your Federal Employer Identification Number (FEIN) or Withholding Account ID for filing purposes. This is no longer the case, so Gusto was using your FEIN, we’ll need you to add your company’s Withholding Account ID in Gusto. 

To find your “Withholding Account ID”:

1. Sign in to your MassTaxConnect profile.
2. Pull up your company record.
3. In the “Withholding Tax” section, locate the box labeled “Account”.

Your Withholding Account ID will be in the box, with the format: WTH-########-###.

If you have questions about your account number, or if you’re having trouble signing in to MassTaxConnect, call the agency at (617) 887-6367.

Filing frequency

Tell us what filing frequency the agency assigned you. If you do not know it yet, choose weekly (the fastest option), and then update it once it's assigned in the same location. Learn where to enter your tax details in the applicable dropdown below. 

For questions about your tax filing frequency, call the agency at (617) 887-6367. 

MA Paid Family & Medical Leave (PFML)

Let us know if you're subject to the employer tax. Instructions can be found in the PFML section of this article.

If the company is subject, here’s how to find your Account ID for PFML:

1. Sign in to your MassTaxConnect profile.
2. Pull up your company record.
3. In the “Paid Family and Medical Leave” section, locate the box labeled “Account”.

Your Paid Family Medical Leave Account ID will be in the box, with the format: PFM-########-###.

Your Massachusetts UI Account Number (also called an Employer Account Number, or EAN) and Contribution Rate appears on the notice that you get from the Massachusetts Department of Unemployment Assistance (DUA) each year.

You may also be subject to the COVID-19 Recovery Assessment Tax (RAT) rate that will appear on the same notice.

Your account number should:

• Be eight digits long
  • If it's shorter, add leading zeros.
• Appear on forms in this format: XXXXXXXX
  
  • Enter these eight digits in Gusto, even if the field is formatted with dashes in between some numerals. 

If you do not know your account number or rates, call the agency at (617) 626-5075. 

If you don't have your assigned rate yet, enter the new employer rate for Massachusetts in Gusto for now. Update the rate once you receive it.

Massachusetts Employer Medical Assistance Contribution (EMAC)

Massachusetts (EMAC) is an additional contribution that some Massachusetts employers must pay. Check if your company is subject to EMAC here.

The company is exempt

Your company is exempt from paying the EMAC if you’ve been an employer for three years or less*. If you've been an employer in Massachusetts for three years or less, you can set your exemption in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Next to "Employer Medical Assistance Contribution", click Edit.
4. Select Exempt.

*Heads up: MA also exempts companies with an average of less than six employees. Gusto will check if you have more than six employees at the end of each quarter and calculate the tax if applicable. Do not apply an exemption in the now if you've been in business for longer than three years, but have fewer than six employees—we've got you covered. 

The company is not exempt/subject

Once you've been an employer in Massachusetts for three years, you may be subject to the tax.

You can update your status in Gusto by following these steps:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to "Massachusetts Tax Setup", and click Manage Taxes.
3. Next to "Employer Medical Assistance Contribution", click Edit.
4. Select Not exempt.
5. Select your EMAC rate.
   • Find the EMAC rate on the "Notice of Employer's Unemployment Insurance Rate" you get annually from the Department of Unemployment Assistance.
   • If you do not know your EMAC rate, call the agency at (617) 626-5075.

After a work address in Massachusetts is assigned to one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Massachusetts Tax Setup" headline and select Manage taxes.
3. Click Edit to enter or change account numbers or rates.

Once you give Gusto access, we can monitor your Massachusetts tax account and update it automatically when we find out about changes. This helps avoid notices, penalties, and interest.

Important: Only the master administrator of your tax account can give Gusto access. 

1. Sign in to your MassTaxConnect account
2. Select Manage My Profile.
3. Go to the More tab.
4. In the “Third Party Access” section, select View Access Requests From Third Parties.
5. You’ll see Gusto’s access request. Select Approve.
6. For both of your Withholding and Paid Family and Medical Leave accounts:
   • In the “Give Rights” column of the table, select the checkbox.
   • In the “Granted Rights” column of the table, set the access type to All.
7. Select Next
8. On the “Summary” page, review the request and click Submit.
9. Next, sign in to Gusto to let us know you've given us access:
   • On your Home page, under "Things to do," click Give Gusto access to your Massachusetts Department of Revenue account. 
   • Click the checkbox to indicate you've completed the task in your tax account. 
   • Click Submit. 

Gusto cannot pay or file taxes on your behalf until you give us access. There are two ways to give us the access we'll need:

• By completing the steps below before a request for access comes from Gusto, or;
• Responding to Gusto's request for access in your online portal.

Important: Only the master administrator of your tax account can grant Gusto access.

Give Gusto third-party access proactively (no pending “request” for access in portal)

If you have questions, or run into any issues, watch this video created by the agency.

1. Sign in to your Commonwealth of Massachusetts account.
2. Click the Additional Services tab. 
3. Under the “Access management Panel”, select Manage third party admin access. 
   • Here, any current or historic TPA access is displayed—if there is no “Access End” date, the listed TPA is current. 
   • Gusto's TPA information will show as:
     • Name: ZenPayroll Inc.
     • Agent ID: 102976
4. To add Gusto as your Third Party Administrator, in the top-right of the panel, click Add Third Party administrator.
5. In the “Agent ID” field, enter Gusto's agent ID: 102976.
6. Select Next.
7. Select the roles you’d like to grant access to—we'll need access to "Revenue Functions".
   • We do not need access to "Perform benefit charges protests" or "Wage and separation mailing".
8. Review and submit the request. 
   • A confirmation page will appear letting you know that the request has been submitted. 
9. Sign in to Gusto to let us know you've given us access. 
10. On your Home page, under "Things to do," click Give Gusto access to your Massachusetts Department of Unemployment Assistance account. 
11. Click the checkbox to indicate you've completed the task in your tax account. 
12. Click Submit.

Responding to Gusto's request for access in the agency portal

If you have questions, or run into any issues, watch this video created by the agency.

1. Sign in to your Commonwealth of Massachusetts account.
2. Click into the Action center tab.
3. If we've already requested access from you, the first panel will display an action item that shows “Respond to a Third Party Access Request”.
4.  Click the hyperlink that says Click here to respond to a third party access request.
   • You will be brought to a new page to review the Third Party Access request, it should show:
     • Third party name: ZenPayroll Inc.
     • Third party ID: 102976.
     • Third Party email: Compliance@gusto.com.
5. Select Yes, and then click Next. 
6. Select the roles you’d like to grant access to—we'll need access to "Revenue Functions".
   • We do not need access to "Benefit charges view or protest" or "Wage and separation mailing".
7. Select Next.
8. Confirm you would like to grant access, and click Submit.
   • A confirmation page will appear letting you know that the request has been submitted.  

Troubleshoot Department of Unemployment Assistance authorization issues 

Verify that the following information entered into Gusto matches what's on file with the MA Department of Unemployment Assistance:

• Official company name
• Company address
• Federal Employment Identification Number (FEIN)
• Unemployment Account Number

If Gusto is still having trouble getting access to your account, troubleshoot with the agency by calling them at (617) 626-5075.