Massachusetts Payroll Calculator Tax Rates | OnPay (2024)

Updated: May 6, 2024

One of the most important things to know as a small business owner is paying your employees correctly for the hard work they’ve done. Luckily, we are here to help. All you have to do is grab their W-4 and their wage information, and our Massachusetts payroll calculator will do the rest of the work for you.

Federal payroll taxes for Massachusetts employers

Let’s go over federal payroll taxes first, shall we? Our handy payroll calculator will help you figure out the federal payroll tax withholding for both your employees and your business.

We’ve organized federal income taxes into a 6-step overview. If you would like to see a more detailed explanation, we invite you to check out ourstep-by-step guide here.

  1. Gross Wages.Always start withgross wages, which represents the dollar amount of earnings an employee has made during the most recent pay period.
    1. For hourly employees, multiply the number of hours worked in the most recent pay period by their pay rate. Make sure to calculate any overtime hours worked at the appropriate rate.
    2. For salaried employees, divide each employee’s annual salary by the number of pay periods you have each year.
    3. And don’t forget about employees who earn commissions, tips, or bonuses. They all get added to gross wages.
  2. Pre-Tax Withholdings.Some of your employees might contribute to a 401(k), flexible spending account (FSA), or otherpre-tax deductions. If so, subtract their contributions from gross pay before you start applying federal payroll taxes.
  3. Federal Income Tax.The biggest tax of them all, which can range from 0% all the way up to a marginal tax rate of 37%. We won’t get into all the little details here. You can find all the information you need through theIRS Publication 15-T.
  4. FICA TaxesSocial Security and Medicare:
    1. Social Security: You need to withhold 6.2% of each employee’s taxable wages until they have earned $168,600 for the year. Any wages above $168,600 are exempt. As the employer, you must match this tax dollar-for-dollar.
    2. Medicare:You need to also withhold 1.45% of each employee’s taxable wages until they have earned $200,000 for the year. You will need to match this tax as well. For employees who earn more than $200,000 in taxable wages, you need to withhold what’s called an Additional Medicare Tax (super original name, right?) of 0.9%. Only the employee is responsible for paying the Additional Medicare Tax, so you don’t have to match it.
  5. FUTA Tax. TheFUTA taxis more commonly known as the unemployment tax, and only employers have to pay this tax, not employees. The tax rate is 6% of the first $7,000 of taxable income an employee earns annually. Note that you can claim atax credit of up to 5.4%for paying your Massachusetts state unemployment taxes in full and on time each quarter, which means that you’ll effectively be paying only 0.6% on your FUTA tax. It definitely pays to save 90% on your tax bill.
  6. Post-Tax Deductions.For most of your employees, you’d be done with their federal payroll taxes at step 5, but some employees may be responsible for paying court-orderedwage garnishmentsor child support. They may also choose to make post-tax contributions to savings accounts, elective benefits (like life insurance), orother withholdings.

Massachusetts state payroll taxes

Income taxes in Massachusetts run at a flat rate of 5% for the 2024 tax year, which means that regardless of whether your employee makes a hundred dollars or a hundred thousand, the tax rate remains the same.

Massachusetts Payroll Calculator Tax Rates | OnPay (1)

Massachusetts state unemployment insurance (SUI)

On the first $15,000 each employee earns, Massachusetts employers also pay unemployment insurance of between 0.56% and 6.77%.

  • New employers pay 1.87%, and new construction employers pay 3.76% for 2024.
  • Employers also have to pay a Work Force Training Contribution of 0.056%, and a Health Insurance Contribution of 5%.

You, my friend, are the master of payroll taxes

You’ve done it! You’ve figured out all your payroll! Now you’re ready to cut some checks. Don’t forget to set aside the employer taxes your company is responsible for. Those FICA, FUTA, and SUI payments can add up if you don’t remit them quarterly. And remember, you want to get that FUTA tax credit of 5.4%, so you definitely should pay your SUI on time. Federal tax filings are due quarterly by filingForm 941. FUTA payments are due quarterly, but you just have to fill outForm 940once a year. You can pay taxes on an ongoing basis via theEFTPSpayment system. Employment tax due dates can be foundhere.

Do you have employees nearby too? These might be helpful.

New York employer payroll calculator

Maine employer payroll calculator

Connecticut employer payroll calculator

Rhode Island employer payroll calculator

Vermont employer payroll calculator

New Hampshire employer payroll calculator

Try OnPay’s top-rated payroll

Additional MA payroll tax resources

Withholding Taxes|Unemployment Insurance for New Employers|Unemployment Insurance Explained|File and Pay Online|Income Tax Withholding

These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.

More helpful payroll calculators

Massachusetts employers can quickly calculate their employees’ gross pay, net pay, and deductions using the free calculator at the top of this page (and feel confident when cutting paychecks). But every now and then, employers may have situations that need a little more number crunching. For example, do your best-performing employees get bonuses from time to time? Remember that Uncle Sam considers this type of payment to be supplemental wages and requires taxes to be withheld. Also, if you have workers who come and go, you may need to figure out how much their final paycheck will be. So, if you need more help adding up the numbers, one of our other calculators below might come in handy.

  • Aggregate bonus tax calculator
  • Flat bonus tax calculator
  • Final pay calculator
  • Gross-up calculator
  • Tip tax calculator
  • 401(k) withholding calculator
  • 401(k) cost estimator

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Massachusetts Payroll Calculator Tax Rates | OnPay (2024)

FAQs

How much tax does Massachusetts take out of your paycheck? ›

Massachusetts has a flat income tax rate of 5%, but charges a 4% surtax on income over $1 million. The state also has a flat statewide sales tax rate of 6.25%. The state's income tax rate is only one of a handful of states that levy a flat rate.

How are payroll taxes calculated in Massachusetts? ›

Income taxes in Massachusetts run at a flat rate of 5% for the 2024 tax year, which means that regardless of whether your employee makes a hundred dollars or a hundred thousand, the tax rate remains the same.

How much is $100,000 salary in Massachusetts after taxes? ›

If you make $100,000 a year living in the region of Massachusetts, USA, you will be taxed $27,662. That means that your net pay will be $72,338 per year, or $6,028 per month. Your average tax rate is 27.7% and your marginal tax rate is 36.6%.

How do I calculate how much of my paycheck is taxed? ›

How do I calculate taxes from paycheck? Calculate the sum of all assessed taxes, including Social Security, Medicare and federal and state withholding information found on a W-4. Divide this number by the gross pay to determine the percentage of taxes taken out of a paycheck.

How to calculate MA state tax? ›

For tax year 2023, Massachusetts has a 5.0% tax on both earned (salaries, wages, tips, commissions) and unearned (interest, dividends, and capital gains) income. Certain capital gains are taxed at 8.5%.

How much tax is taken out of a $1200 check? ›

However , on average , approximately 22 % of a $ 1200 paycheck would be deducted for taxes , which amounts to $ 264 . This includes federal income tax , state income tax , and FICA taxes ( Social Security and Medicare ) .

How do I calculate my own payroll taxes? ›

To calculate payroll taxes for employees, begin by determining gross pay and identifying taxable income. Deduct pre-tax contributions, apply federal, state, and local tax rates, and calculate FICA taxes. Subtract post-tax deductions and arrive at net pay. Keep thorough records for compliance and auditing.

What is the Massachusetts state withholding tax rate? ›

The Massachusetts Department of Revenue announced withholding tables for the fiscal year beginning January 1, 2024. The new withholding method includes a surtax on earnings of $1,053,750 or more. While income under $1,053,750 is taxed at 5%, annual income above $1,053,750 will be taxed at 9%.

What are the tax brackets in Massachusetts? ›

Massachusetts Tax Rates, Collections, and Burdens

Massachusetts has a graduated state individual income tax, with rates ranging from 5.00 percent to 9.00 percent. Massachusetts has an 8 percent corporate income tax rate. Massachusetts also has a 6.25 percent state sales tax rate and does not have local sales taxes.

How much is $105,000 salary after taxes in Massachusetts? ›

If you make $105,000 a year living in the region of Massachusetts, USA, you will be taxed $29,491. That means that your net pay will be $75,509 per year, or $6,292 per month.

How much is $120k after taxes in Massachusetts? ›

If you make $120,000 a year living in the region of Massachusetts, USA, you will be taxed $35,020. That means that your net pay will be $84,980 per year, or $7,082 per month.

How much is $300,000 after taxes in Massachusetts? ›

If you make $300,000 a year living in the region of Massachusetts, USA, you will be taxed $103,990. That means that your net pay will be $196,010 per year, or $16,334 per month.

What is the formula for payroll? ›

Payroll Calculation Formulas

Net pay is the final payout that is disbursed to an employee after all the necessary deductions made. Gross pay = Basic salary + HRA + DA + Allowances + One-time payment/incentive (Reimbursem*nts, Arrears, Bonus, etc.)

How do you calculate tax amount? ›

The formula for calculating the sales tax on a good or service is: selling price x sales tax rate, and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax.

How much tax gets taken out of $8000? ›

If you make $8,000 a year living in the region of California, USA, you will be taxed $700. That means that your net pay will be $7,300 per year, or $608 per month. Your average tax rate is 8.8% and your marginal tax rate is 8.8%.

How much is $70,000 after taxes in Massachusetts? ›

If you make $70,000 a year living in the region of Massachusetts, USA, you will be taxed $17,164. That means that your net pay will be $52,836 per year, or $4,403 per month.

What is the tax rate in Massachusetts? ›

Massachusetts Tax Rates, Collections, and Burdens

Massachusetts has a graduated state individual income tax, with rates ranging from 5.00 percent to 9.00 percent. Massachusetts has an 8 percent corporate income tax rate. Massachusetts also has a 6.25 percent state sales tax rate and does not have local sales taxes.

What is the payroll tax rate in Massachusetts for 2024? ›

Income Tax Withholding Tables at 5.0% Effective January 1, 2024. Percentage Method Tables updated to include 4% Surtax. How to use the WEEKLY wage-bracket table method of Massachusetts income tax withholding: 1. A claimed spouse counts as “4” exemptions for Massachusetts income tax withholding purposes.

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