Massachusetts Payroll Instructions

Massachusetts has state income tax withholding. The payroll tax computations did not change for 2022. Exemptions and/or tax tables have changed in 15 of the past 32 years, most recently in 2020. The state calculates payroll withholding amounts with a simple flat percentage tax (currently 5.0%) after deducting exemptions.

HINT: TurtleSoft provides free annual updates for US federal and Massachusetts tax withholding rates.

Massachusetts State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Massachusetts dependents into the State Exemptions field.
  7. Enter a Massachusetts Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Massachusetts packages in the list, you'll need to import 2022 tax info first.
  8. Click OK.

The Massachusetts state income tax system includes a special deduction for blindness. If the employee and/or her spouse is blind, enter a “1” into the “Other Exemptions” field in the Employee Account. Otherwise, leave the field blank.

Massachusetts State Unemployment Tax Instructions

Massachusetts SUTA tax applies to the first $15,000 in wages. In 2023, rates range between 1.12% and 10.96%, depending on your company's past experience. The starting rate for new companies depends on the business type.

To enter your state SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open your state's HINT: If you don't see Massachusetts SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Massachusetts Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

State Tax Contacts

Website

Official State Lawn Ornament

Glacial boulder.