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Massachusetts combines PFML paid family leave, a Millionaire’s Tax surtax on income above $1M, and some of the country’s strictest non-compete restrictions. Rippling handles MA state withholding, PFML contributions, and SUTA filings.
Massachusetts is one of the US’s most important technology, biotech, and financial services states, with Boston, Cambridge, and the Route 128 corridor as major hubs. Massachusetts payroll is defined by its comprehensive PFML (Paid Family and Medical Leave) program, the Millionaire’s Tax surtax on income above $1M (effective 2023), strict non-compete law, mandatory earned sick time, and a Fair Share employer health contribution requirement.
Rippling’s Massachusetts payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| MA SUTA (DUA) | New employer 2.42% | On first $15,000 of wages (2024) |
| PFML (employer share) | Varies | Employers with 25+ employees pay employer share of medical leave premium |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory from employee 1 |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| MA State Income Tax | 5% (9% on income above $1M) | Millionaire’s Tax on income above $1M (2023+) |
| PFML (employee share) | 0.88% of wages | Split medical/family leave premium |
| Massachusetts Income | MA Rate |
|---|---|
| Up to $1,000,000 | 5% |
| Above $1,000,000 | 9% (5% + 4% Millionaire’s Tax surtax) |
MA withholding remitted to DOR via MassTaxConnect. Withholding frequency: monthly or quarterly. Annual W-2 and M-3 reconciliation.
Final Pay: Involuntary termination: final pay due on the next business day (MA General Laws c.149 §148). Voluntary resignation: next scheduled payday. Accrued vacation must be paid out on termination unless a written policy expressly provides otherwise.
WARN Act: Federal WARN Act applies (100+ employees). No separate Massachusetts WARN law.
Massachusetts PFML provides: up to 20 weeks of paid medical leave and 12 weeks of paid family leave at 80% of wages (up to the state cap of $1,144.13/week in 2024). Employee contribution: 0.88% of wages. Employer contribution applies if 25+ employees. Rippling manages PFML withholding, contributions, and quarterly remittances to DFML.
Massachusetts enacted a 4% surtax on personal income above $1,000,000/year effective January 1, 2023, bringing the effective rate to 9% above that threshold (5% standard + 4% surtax). Employees earning above $1M need special withholding treatment. Rippling applies the correct MA withholding rate including the surtax for high earners.
Massachusetts non-competes must be: in writing; signed before employment starts (or with garden leave/consideration for existing employees); limited to 1 year maximum; geographically and scope-limited to what is reasonable; and provide garden leave pay (at least 50% of base salary during the restricted period) unless terminated for cause.
Massachusetts’ minimum wage is $15.00/hour (fully phased in as of January 2023). Tipped employees: $6.75/hour base (tip credit up to $8.25/hour). No further scheduled increases as of 2024.
