Country Payroll Guide USA – Massachusetts

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Key Facts

Capital
Boston
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6.25%

Contributions

Employers

Unemployment Insurance (State)
Unemployment (State) - 0.94% to 14.37%
Unemployment- New Employer (State)
Unemployment- New Employer (State) - 2.42%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Paid Family and Medical Leave
Paid Family and Medical Leave - 0.38%
Total Employment Cost
Total Employment Cost - up to 28.4%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
Unemployment (Federal)
Unemployment (Federal) - 6%
Paid Family and Medical Leave
Paid Family and Medical Leave - 0.38%
Total Employee Cost
Total Employee Cost - up to 14.93%

Minimum Wage

Minimum Wage
The minimum wage in Massachusetts is 13.50 USD per hour.

Payroll

Payroll Cycle
Monthly, Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1) Single Filer (Federal)
$0 - $9,875 = 10%
Employee Income Tax (2) Single Filer (Federal)
$9,876 - $40,125 = 12%
Employee Income Tax (3) Single Filer (Federal)
$40,126 - $85,525 = 22%
Employee Income Tax (4)Single Filer (Federal)
$85,526 - $163,300 = 24%
Employee Income Tax (5) Single Filer (Federal)
$163,301 - $207,350 = 32%
Employee Income Tax (6) Single Filer (Federal)
$207,350 - $518,400 = 35%
Employee Income Tax (7) Single Filer (Federal)
Over $518,400 = 37%

Employee Income Tax (State)

Employee Income Tax (State) (1)
Flat Rate = 5%

Working Hours

General Working Hours

40 hours per week, eight hours per day.

Overtime

For employees under the FLSA that are non-exempt.

Leave

Paid Time Off

There are no statutory laws on paid time off.

Public Holidays

11 public holidays.

Sick Days

Most employees in Massachusetts are entitled to sick leave. For employers who have 10 or less employees, sick leave is unpaid and for employers with more than 11 employees, sick leave must be paid.  Sick leave is as follows: one  hour of sick leave accrued for every 30 hours of work. Sick leave is capped at 40 hours per year. Accrual of sick leave begins from the employee’s start date and can be used after 90 days of employment. Sick leave can be used for the employee’s personal illness as well as to care for a parent, child, or spouse.

Maternity Leave

See parental leave.

Paternity Leave

See parental leave.

Parental Leave

In Massachusetts, parental leave is gender neutral and applies to both parents and covers maternity and paternity leave. If an employer has more than six employees, an employee is entitled to eight weeks of unpaid leave for the birth of a child or adoption. This leave can be used after the completion of 90 days of employment. When an employee is also entitled to the FMLA, these two leaves run simultaneously with one another.

Other Leave

Under the Paid Family and Medical Leave Law (PFML), Massachusetts employees can receive up to 26 weeks of paid leave in order to care for a sick family member, bond with a child during the first 12 months of life, care for a family member in the armed forces, or manage one’s own serious health condition. Beginning July 1, 2021, paid family and medical leave benefits will become available to care for any covered family member with a serious health condition.

Termination

Termination Process

Massachusetts follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. At the time of termination, the employer must pay all the necessary wages up to the day of termination.

Notice Period

There are no provisions in the law outlining notice, however, dismissal in Massachusetts follows the federal Worker Adjustment and Retraining Notification Act (WARN) which outlines 60 days’ notice for mass layoffs.

Severance Pay

There is no requirement for severance pay and it is a matter of agreement between an employer and an employee. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties. Some employers choose to offer severance based on their employee’s length of service as an example.

Probation Period

One year.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.