Massachusetts registration and tax info – Niural

Prior to issuing payments to employees, ensure that you've completed the payroll registration process in the relevant state of their employment. This might take a few weeks, so beginning early is advisable to acquire the necessary tax account details for payment purposes.

Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.

Let us register for you

How it works

On adding a new work address in a different state and recruiting a new employee who has been allocated a work address in that state, you can access registration support within Niural.

The pricing is subject to change based on the state.

Here's an overview of the procedure:

1. Provide essential business details.

2. Niural and Middesk will verify the accuracy of the information.

3. Registration applications are normally sent within 3-5 business days.

4. Look out for registration details from Middesk in the mail.

5. Middesk can guide you through entering any data they don't handle on your behalf through Niural.

Initiate the state tax registration process

Navigate to the Company tab.

Select Tax setup.

Under “[State name] Tax Setup”, click Let Niural register for you.

Note: Niural can only register for you if you don't yet have a state account already.

Enter company information on Middesk.

Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.

Check the status of your order

Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including:

1. Reviewing registration information.

2. Any additional state-specific instructions.

Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.

Cancel your order

If an order is already completed, you'll need to contact Middesk to cancel.

If an order is in progress you can email us at support@niural.com.

You'll be refunded, but it can take a few business days to process.

Massachusetts tax agencies

Massachusetts Department of Revenue (DOR):
- Income Tax Withholding
- Paid Family Medical Leave
Department of Unemployment Assistance:
- Unemployment Tax
- EMAC

Register for a withholding and paid family medical leave (PFML) account in MA

To register for a withholding and paid family medical leave account in Massachusetts, follow these steps:

Begin your business registration on the MassTax Connect website.
Click "Next" and follow the remaining instructions to register for both:

Employer withholding
- The DOR accepts registration using both your FEIN and another format (WTH-000...).
- Paid Family and Medical Leave (PFML).

Note that third-party authorization for Niural is required by this agency to pay and file your taxes. Please grant us the necessary access we'll need to handle these tasks on your behalf.

Enter the tax account information in Niural

Once a valid Massachusetts work address has been added in Niural for one or more employee(s), you can add your tax account information:

Navigate to the Company tab.
Select Tax setup.
Click on the Edit button next to “Massachusetts Tax Setup”.
You don't need to provide a company-specific withholding account number in Niural for us to file and pay taxes on your behalf. We utilize your federal identification number (FEIN) for this purpose.
Select "Yes" or "No" to indicate whether you are liable for the Paid Family and Medical Leave tax.
Update your filing frequency to align with the withholding tax filing frequency provided by your agency.
- If you haven't received your company-assigned filing frequency yet, enter the fastest schedule option available until you receive this information. Once you obtain your company-assigned filing frequency, make sure to update the information in Niural at the same location.
Select "Yes" if you have already registered under "Registered with Commonwealth of Massachusetts."
Enter your assigned Paid Family and Medical Leave Account ID in the provided field.
- For example: PFM-000…

Troubleshooting withholding registration issues

If you've created an account on MassTaxConnect but haven't registered for withholding and PFML or haven't received a WTH account ID yet, follow these steps:

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

If you have a Massachusetts withholding account number that starts with "WTH" but haven't had active payrolls in Massachusetts recently, you may need to call the DOR at (617) 887-6367, Option 4, to reactivate your WTH Account ID.

For State Unemployment Insurance Tax (SUI) registration and EMAC instructions, refer to the DUA's step-by-step registration instruction guide if you encounter any difficulties during the registration process.

Register for state unemployment insurance tax

To complete your unemployment tax registration on the Commonwealth of Massachusetts website, follow these steps:

After registration, you should receive the following information instantly:
1. A UI Account Number
2. A UI Contribution Rate
3. Possibly the new COVID-19 Recovery Assessment Tax (RAT) rate
Enter the requested tax information you receive in Niural.

Keep in mind that third-party authorization for Niural is required by this agency to pay and file your taxes. Please grant us the necessary access we'll need to handle these tasks on your behalf.

Enter the tax account information in Niural

Once a valid Massachusetts work address has been added in Niural for one or more employee(s), you can add your tax account information:

Once a valid Massachusetts work address has been added in Niural for one or more employee(s), you can add your tax account information:
Navigate to the Company tab.
Select Tax setup.
Click on the Edit button next to “Massachusetts Tax Setup”.
Enter your unemployment account number.
- If you need to update your tax account number, please contact us at support@niural.com. It's important to address this issue early, as there may be tax implications if taxes have already been paid or filed to an incorrect account number.
Enter your unemployment contribution rate. Remember not to include the following:
- Workforce Training Rate or
- COVID Recovery Assessment Rate
  - COVID Recovery Assessment Rate is to be entered separately.
  - If you haven’t received your rate yet, refer to this article for the state-specific New employer rate until you receive the agency-assigned rate.
Enter the COVID-19 Recovery Assessment Tax (RAT) rate.
- This COVID-19 Recovery Assessment Tax (RAT) is separate from your regular unemployment contribution rate. It's important to note that Massachusetts has recalculated all employer contribution rates for standard unemployment insurance in light of the pandemic.
- The effective date of the COVID-19 Recovery Assessment Tax (RAT) rate was retroactively set to January 1st, 2021, according to the agency's guidelines. This rate can range from 0% to 1.509%, depending on specific factors and calculations.

If you have any concerns regarding your tax account numbers or rates, don't hesitate to reach out to the agency for clarification. You can contact them at (617) 626-5075.

Massachusetts Employer Medical Assistance Contribution (EMAC)

EMAC (Employer Medical Assistance Contribution) is an additional contribution that certain Massachusetts employers may be obligated to pay. You can ascertain whether your company is subject to EMAC by visiting this link or by contacting the appropriate Massachusetts state agency for further information.

If your company is exempt from paying the Employer Medical Assistance Contribution (EMAC) because you've been an employer for three years or less, you can set your exemption status in Niural by following these steps:

Navigate to Jobs and Pay under Company details.
Scroll to the Massachusetts Tax Setup section and click on Edit.
Locate the Employer Medical Assistance Contribution
Select Exempt from the dropdown.
Click on Save

If your company is not exempt or is subject to the EMAC tax because you've been an employer in Massachusetts for more than three years, you can update your status in Niural as follows:

Navigate to Jobs and Pay under Company details.
Scroll to the Massachusetts Tax Setup section and click on Edit.
Locate the Employer Medical Assistance Contribution
Select Not exempt from the dropdown.
Select your EMAC rate.
Click on Save.

You can find the EMAC rate on the Notice of Employers Unemployment Insurance Rate that you receive annually from the Department of Unemployment Assistance (DUA). If you're unsure about your rate, you can contact the agency at (617) 626-5075.

Please note that Massachusetts also exempts companies with an average of less than six employees from the EMAC tax.

Niural will determine if you exceed six employees at the end of each quarter and calculate the tax, if applicable, using the EMAC rate you've selected in Niural. If you've been in business for longer than three years but have fewer than six employees, you don't need to apply an exemption in Niural; the system will handle it for you.

MA Paid Family and Medical Leave (PFML) info

In Massachusetts, employers are required to register for both withholding (income) tax and Paid Family and Medical Leave (PFML) at the same time. Niural will handle withholding both the employee and employer amounts (if applicable) and file them with the Massachusetts Department of Family and Medical Leave at the end of each quarter.

Here are some key details about PFML in Massachusetts:

Employee Contribution: The employee contribution tax rate is 0.378% of their wages, up to the Social Security wage base. Niural will withhold these deductions from employee wages.
Employer Contribution for Large Employers: Employers with 25 or more workers (including employees and certain 1099 workers) are required to pay an employer share of 0.372%. Employer contribution requirements may vary based on company size.
Employer Contribution Deduction: The employer portion of MA PFML will be deducted at the end of each quarter. You will be notified of the amount before any deductions occur.
Contractors: PFML contributions are collected based on employee wages only and do not apply to contractors.
Options for Employer Coverage: Employers have the option to cover some or all of their employees' PFML deductions. The amount covered by the employer will not be subject to employee withholding.

Please note that PFML regulations and requirements may change over time, so it's essential to stay updated with the latest information from the Massachusetts Department of Family and Medical Leave. You can find more detailed information about PFML in Massachusetts on the agency's website.

Let Niural know whether you're subject, or not subject, to PFML

Navigate to Jobs and Pay under Company details.
Scroll to the Massachusetts Tax Setup and click on Edit.
Under Required to pay PFML employer portion?, select Yes if you owe this tax, or No, if you are not liable.
Massachusetts assigns an account number for the Paid Family and Medical Leave (PFML) program. If your business is subject to PFML, go to "Paid Family and Medical Leave Account ID" and enter your assigned account number.

Cover a percentage of your employees' PFML deductions

Here are some important reminders regarding PFML settings in Massachusetts:

These settings will be applied to all employees in the state, ensuring consistency.
Any changes you make will go into effect the quarter following the one in which the edits were made. For example, if you make an edit in July (during Q3), the company will start covering employee deductions starting on October 1 (the beginning of Q4).
In the interim, you have the option to issue non-taxable reimbursements at the end of the quarter to repay all or a part of the amount(s) deducted from employees.

These settings specifically apply to PFML deductions in Massachusetts and are designed to help you manage and comply with PFML regulations in the state.

Specify the percentage of PFML employee-deductions you want to cover.

Navigate to Jobs and Pay under Company details.
Scroll to the Massachusetts Tax Setup and click on Edit.
Under PFML employee portion, enter the percentage you'd like to cover.
Click Save.

Contractors and PFML

Covered Individuals under the MA PFML program include W-2 employees and certain qualified 1099 contractors within your trade or business.

Independent contractors who meet specific qualifications are not considered Covered Individuals under the MA PFML program.

Niural does not handle tax withholding for 1099 contractors. If you have a contractor who should be included in the MA PFML program as per the agency's criteria:

Withhold PFML for the individual outside of Niural.
Submit a separate file and payment for contractor premium withholdings.

Private plans and PFML

If you've already registered with the state, you must enter your tax account details in Niural to pay your employees. Here's what you need to know:

You need to be registered with one or more of the following agencies for Niural to file and pay taxes on your behalf:

Massachusetts Department of Revenue (DOR) for income tax withholding and paid family medical leave.
Commonwealth of Massachusetts for unemployment tax and EMAC.

If you haven't registered yet, please click on the "Register a company with the state" dropdown above in this article to begin the registration process.
For your withholding tax account number and filing frequency:

If you've previously registered with the Department of Revenue, use your federal employer identification number (FEIN) in Niural.
The Department of Revenue accepts another number format (WTH-000...), but Niural will use your FEIN for filing and payment.

If you have any questions about your account number or tax filing frequency, you can contact the agency at (617) 887-6367.

Don't have your filing frequency yet?

Start by entering the fastest schedule option available until you receive your company-assigned filing frequency.

Once you receive your company-assigned filing frequency, make sure to update this information in Niural in the same location where you initially entered the fastest schedule option.

Massachusetts Paid Family & Medical Leave (PFML)

Look for the notice that you receive annually from the Massachusetts Department of Unemployment Assistance (DUA). On this notice, you will find your UI Account Number and Contribution Rate. Additionally, it may include information about the new COVID-19 Recovery Assessment Tax (RAT) rate.

If you are uncertain about your account number or rate(s), you can contact the agency at (617) 626-5075 for assistance.

Don't have your rate yet?

If you're a new employer in Massachusetts and haven't yet received your agency-assigned unemployment contribution rate, you can enter the state-specific "New employer rate" in Niural temporarily. Follow these steps:

Enter the "New employer rate" from this article into the relevant field in Niural for your unemployment tax setup.
As soon as you receive your company-assigned rate from the agency, update the rate in Niural to ensure accurate tax calculations and filings.

This temporary rate allows you to get started with your tax obligations while awaiting your official rate from the agency. Make sure to keep an eye out for your agency-assigned rate and promptly update it in Niural when it becomes available.

Massachusetts Employer Medical Assistance Contribution (EMAC)

Navigate to Jobs and Pay under Company details.
Scroll to the Massachusetts Tax Setup section and click on Edit.
Locate the Employer Medical Assistance Contribution
Select Exempt from the dropdown.
Click on Save

If your company is not exempt or is subject to the EMAC tax because you've been an employer in Massachusetts for more than three years, you can update your status in Niural as follows:

Navigate to Jobs and Pay under Company details.
Scroll to the Massachusetts Tax Setup section and click on Edit.
Locate the Employer Medical Assistance Contribution
Select Not exempt from the dropdown.
Select your EMAC rate.
Click on Save.

Please note that Massachusetts also exempts companies with an average of less than six employees from the EMAC tax.

How to authorize Niural with Massachusetts agencies

Learn how to authorize Niural as your third-party agent (TPA) for the agencies below.

Authorizing Niural with the MA Department of Revenue

Here are the steps to grant Niural access to your Massachusetts Department of Revenue (DOR) account:

Sign in to your MassTaxConnect account on the Massachusetts DOR website.
Select "Manage My Profile."
Go to the "More" tab.
In the "Third Party Access" section, select "View Access Requests From Third Parties.”
Locate Niural's access request and select "Approve."

For both your Withholding and Paid Family and Medical Leave accounts:

In the "Give Rights" column, select the checkbox.
In the "Granted Rights" column, set the access type to "All."
Select "Next."
On the "Summary" page, review the request and click "Submit."

After granting access, sign in to your employer Niural account.

On your Home page, under “Your Tasks" click "Give Niural access to your Massachusetts Department of Revenue account."
Click the checkbox to indicate that you've completed the task in your tax account.
Click "Submit."

Authorizing Niural with the MA Department of Unemployment Assistance

To grant Niural access to your Massachusetts Department of Unemployment Assistance (DUA) account, follow these steps:

Sign in to your Commonwealth of Massachusetts account.
In the "TPA Home" section, select "Account Maintenance."
Under "Account Maintenance," choose "Third Party Administrator (TPA) Authorization."
To add Niural as a Third Party Administrator, select "New."
In the "TPA ID" field, enter "102976."
Select "Next."
In the "TPA Services Begin Date" field, enter the date you started using Niural.
In the "Un-assigned Roles" section, ensure that these checkboxes are selected:
- Account Maintenance Update and Submit
- Payments Update and Submit
- Employment and Wage Detail Update and Submit
- EMAC Supplement View Only

After granting access, sign in to your employer Niural account.

On your Home page, under “Your Tasks" click "Give Niural access to your Massachusetts Department of Revenue account."
Click the checkbox to indicate that you've completed the task in your tax account.
Click "Submit."

Troubleshooting Department of Unemployment Assistance authorization issues

To ensure that your information in Niural matches what is on file with the Massachusetts Department of Unemployment Assistance (DUA), follow these steps:

Verify Official Company Information:

Check that the official company name and address in Niural are accurate and match the information on file with the DUA.

Confirm FEIN (Federal Employer Identification Number):

Ensure that the FEIN entered in Niural is correct and matches the FEIN on record with the DUA.

Validate Unemployment Account Number:

Double-check that the unemployment account number entered in Niural is accurate and matches the one registered with the DUA.

Troubleshoot Access Issues:

If you encounter any difficulties with Niural gaining access to your DUA account, contact the DUA directly at (617) 626-5075. They can assist you in resolving access issues and verifying your account information.

Here are the forms that you may need to file in Massachusetts for tax and payroll purposes:

Employer’s Return of Income Taxes Withheld (M-941): This form is used to report and remit income taxes withheld from your employees' paychecks.
Reconciliation of Massachusetts Income Taxes Withheld for Employers (M-3): The M-3 form is used to reconcile the income taxes you've withheld and report additional information to the state.
Wage and Tax Statement (State W2): This form is used to report wages and taxes withheld for each employee to both the state and the employee.
Paid Family & Medical Leave Quarterly Filings: These filings are related to the Paid Family and Medical Leave program in Massachusetts, which includes contributions and reporting on employees' leave balances.
Quarterly Employment and Wage Detail Report (SUI, EMAC, and workforce training fund): This report includes information related to the State Unemployment Insurance (SUI), Employer Medical Assistance Contribution (EMAC), and the workforce training fund. It provides details on employment and wages for your employees.
MA New Hire Report: The New Hire Report is a requirement in Massachusetts, and it involves reporting information on newly hired employees to help with child support enforcement.

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