Payroll and Benefits Guide United States – Massachusetts
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 0.83% – 4.61% | State Unemployment Insurance (SUI), applied on the first 15,000 USD of each employee’s wages.
The rates are determined based on the employer’s experience with unemployment claims and contributions. |
| 2.5% – 3.5% | State Unemployment Insurance – New Employer, applied on the first 15,000 USD of each employee’s wages. The rate depends on industry and experience. |
| 0.12% – 0.34% | Employer Medical Assistance Contribution (EMAC), applied on the first 15,000 USD of each employee’s wages. New employers are exempt from paying EMAC in year 1 to 3. |
| 0.056% | Workforce Training Fund Program (WTFP) |
| 6.20% | Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year. |
| 1.45% | Federal Insurance Contributions Act (FICA) – Medicare.
An additional 0.9% should be withheld from employees earning above 200,000 USD per year. |
| 0.60% – 6.00% | Federal Unemployment Tax Act (FUTA), applied on salary up to 7,000 USD per year.Employers who pay their state unemployment tax in full and on time are eligible for a 5.4% tax credit, reducing the FUTA rate to 0.6%. |
| 11.756% – 22.156% | Total Employment Cost |
| Employee Payroll Contributions | |
| 6.20% | Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year. |
| 1.45% | Federal Insurance Contributions Act (FICA) – Medicare.
An additional 0.9% should be withheld from employees earning above 200,000 USD per year. |
| 7.65%-8.55% | Total Employee Cost |
| State Employee Income Tax | Annual |
| State Income Tax – Single & Married – Joint Filing | |
| 5.00% or 9.00% | Flat Rate, on annual gross income over 8,000 USD.
For earnings over 1 million USD an additional 4% tax is levied, making the highest effective tax rate 9% |
| Standard Deduction and Personal Exemption | |
| Single | 15,000 USD |
| Couple/Married – Joint Filing | 30,000 USD |
| Head of Household | 22,500 USD |
| Personal Exemption | |
| Single | 4,400 USD |
| Couple/Married – Joint Filing | 8,800 USD |
| Dependent | 1,000 USD |
| Head of Household | 6,800 USD |
| Federal Employee Income Tax | Annual |
| Federal Tax – Singles | |
| 10.00% | Up to 11,925 USD |
| 12.00% | 11,925 – 48,475 USD |
| 22.00% | 448,475 – 103,350 USD |
| 24.00% | 103,350 – 197,300 USD |
| 32.00% | 197,300 – 250,525 USD |
| 35.00% | 250,525 – 626,350 USD |
| 37.00% | Above 626,350 USD |
| Federal Tax – Married – Joint Filing | |
| 0.00% | Up to 23,850 USD |
| 12.00% | 23,850 – 96,950 USD |
| 22.00% | 96,950 – 206,700 USD |
| 24.00% | 206,700 – 394,600 USD |
| 32.00% | 394,600 – 501,050 USD |
| 35.00% | 501,050 – 751,600 USD |
| 37.00% | Above 751,600 USD |
| Federal Tax – Heads of Household | |
| 10.00% | Up to 17,000 USD |
| 12.00% | 17,000 – 64,850 USD |
| 22.00% | 64,850 – 103,350 USD |
| 24.00% | 103,350 – 197,300 USD |
| 32.00% | 197,300 – 250,500 USD |
| 35.00% | 250,500 – 626,350 USD |
| 37.00% | Above 626,350 USD |
| Standard Deduction and Personal Exemption | |
| 15,000 USD | Single |
| 30,000 USD | Married Filing Jointly |
| 22,500 USD | Head of Household |
Minimum Wage
General
The minimum wage in Massachusetts is set at 15.00 USD per hour.
The Federal minimum wage rate is 7.25 USD per hour.
Payroll
Payroll Cycle
Employees are paid semi-monthly and monthly. Executives, administrators, or professional employees can be paid every 2 weeks or can opt to be paid monthly.
When payments are made semi-monthly, the payment date is set by the number of working days.
If an employee works 5 or 6 days a week, they must be paid within 6 days from the end of the pay period.
If an employee works a 7-day week, the employee must be paid within seven days from the end of the pay period.
13th Salary
There are no provisions in the law regarding 13th salaries.
Working Hours
General
In Massachusetts, the workweek is a maximum of 40 hours per week or 8 hours per day.
Overtime
Massachusetts adheres to the Fair Labor Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay.
If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.
Leave
Annual Leave (vacation)
Massachusetts does not have any state laws that govern paid leave, however, it is common for employers to decide whether to offer paid or unpaid vacation leave.
This must comply with employment law and must be stipulated in the collective bargaining agreements.
Public Holidays
Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.
Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.
Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 19 January 2026 | Monday | Martin Luther King, Jr. Day | Standard holiday |
| 16 February 2026 | Monday | Washington’s Birthday (Presidents’ Day) | Standard holiday |
| 17 March 2026 | Tuesday | Evacuation Day | |
| 20 April 2026 | Monday | Patriots’ Day | Standard holiday |
| 25 May 2026 | Monday | Memorial Day | Standard holiday |
| 17 June 2026 | Wednesday | Bunker Hill Day | |
| 19 June 2026 | Friday | Juneteenth Independence Day | Standard holiday |
| 3 July 2026 | Friday | Independence Day (Observed) | Standard holiday |
| 7 September 2026 | Monday | Labor Day | Standard holiday |
| 12 October 2026 | Monday | Indigenous Peoples’ Day / Columbus Day | Standard holiday |
| 11 November 2026 | Wednesday | Veterans Day | Standard holiday |
| 26 November 2026 | Thursday | Thanksgiving Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).
FMLA eligible employees are entitled to:
- 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
- Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
- Care for the employee’s spouse, child, or parent who has a severe health condition.
- Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
- Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”
Or
- 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).
In addition to the FMLA, employers in Massachusetts provide 1 hour of sick leave for every 30 hours worked up to a maximum of 40 hours per year. This accrual starts on the employee’s start date and can be used any time after the completion of 90 days of employment. There is an alternative lump sum payment that requires 8 hours per month for five months if an employee works 37.5 hours or more per month.
Maternity Leave
Falls under the FMLA (see Sick Leave).
In addition to the FMLA and the Pregnancy Discrimination Act, Massachusetts also has the Massachusetts Parental Leave Act. This applies to all employers with 6 or more employees and is relevant to pregnant employees and those undertaking adoption. It requires employers to provide both women and men with up to 8 weeks of unpaid parental leave for the following purposes:
- Giving birth
- Placement of a child under the age of 18 (or under the age of 23 if the child is mentally or physically disabled) for adoption
Employees are required to provide at least 2 weeks’ notice prior to leave.
Beginning July 1, 2021, paid family and medical leave benefits will become available in Massachusetts to care for any covered family member with a serious health condition.
Paternity Leave
Falls under the FMLA (see Sick Leave) and The Massachusetts Parental Leave Act (see Maternity Leave).
Parental Leave
Falls under the FMLA (see Sick Leave) and The Massachusetts Parental Leave Act (see Maternity Leave).
Other Leave
- Jury Duty: Full-time employees with 3 days of job-protected paid leave for jury duty, as a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
- Voting Leave: Employees who are registered to vote must be allowed up to 2 hours unpaid leave to vote in a general or special election.
- In addition to the federal law USERRA, Massachusetts law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the public health service, and any other category of persons designated by the president in a time of war or emergency. Employers with more than 50 employees must provide paid leave to eligible veterans. All employers must allow employees to participate in activities such as Veteran’s Day or Memorial Day events.
Termination
Termination Process
Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.”
This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).
The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds.
In such cases, the parties negotiate the foundations for a “just cause” termination.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| The law does not specify a fixed payday date for all employees; the employer must pay employees on the “regular payday” that the employer has established. |
|
The statute does not mandate payment only via bank account. Wages must be paid in the usual and agreed form — e.g., wage in money, check, or as regularly paid. The employer may use direct deposit if employee consented under usual payday system. |
Notice Period
Most employees are employed “at-will,” and either party can terminate the employment relationship without notice.
In Massachusetts, PTO is considered wages and required to be paid out upon termination.
There is no official notice period, but general practice is 2 weeks.
In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.
Severance Pay
Except when outlined in an employment contract or collective bargaining agreement, employers are not required to pay severance to terminated employees.
Many employers choose to offer severance payment based on the employee’s length of employment.
Probation Period
There are no provisions in the law regarding probation or trial periods. However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.
Minimal Statutory Termination Costs
Some states require PTO balances to be paid out during termination, also any bonuses or commissions that were promised in the employment contract
Immigration
Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.
An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee.
If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).
To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:
- H-1B – for applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
- H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
- H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
- H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
- L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
- 0 – for people with extraordinary ability in science, arts, education, business, or athletics.
The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.
For those seeking employment-based immigrant visas:
- E-1 – highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
- E-2 – for those with advanced degrees or exceptional ability.
- E-3 – for skilled workers and professionals, as well as unskilled workers.
- E-4 – members of certain immigrant groups.
- E-5 – immigrant investors in US companies (substantial investment).
Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.
All employers are obligated to verify that all individuals they employ are authorized to work in the United States.
VAT
General
Massachusetts has a State sales tax of 6.25%. There are no Local sales tax in Massachusetts.
Stay up to date on payroll & employment law changes
Version History
As of Jan. 1, 2021, Massachusetts employees can receive up to 26 weeks of paid leave under the Paid Family Medical Leave (PFML) 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.
Questions & Answers
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Payroll and Benefits Guide
in United States – Massachusetts
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 19 January 2026 | Monday | Martin Luther King, Jr. Day | Standard holiday |
| 16 February 2026 | Monday | Washington’s Birthday (Presidents’ Day) | Standard holiday |
| 17 March 2026 | Tuesday | Evacuation Day | |
| 20 April 2026 | Monday | Patriots’ Day | Standard holiday |
| 25 May 2026 | Monday | Memorial Day | Standard holiday |
| 17 June 2026 | Wednesday | Bunker Hill Day | |
| 19 June 2026 | Friday | Juneteenth Independence Day | Standard holiday |
| 3 July 2026 | Friday | Independence Day (Observed) | Standard holiday |
| 7 September 2026 | Monday | Labor Day | Standard holiday |
| 12 October 2026 | Monday | Indigenous Peoples’ Day / Columbus Day | Standard holiday |
| 11 November 2026 | Wednesday | Veterans Day | Standard holiday |
| 26 November 2026 | Thursday | Thanksgiving Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
What are the rules for reducing employee hours and salary? What is the notification period?
Employers who would like to reduce the working hours and pay of their employees by 10%-60% can apply for Workshare. The employee would be entitled to partial unemployment benefits. Workshare can begin the following Sunday from the date that the employer applies.