Massachusetts employer payroll tax calculator 2026
Hiring in Massachusetts? New Massachusetts employers pay 2.476% state unemployment tax on the first $15,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,003 a year in employer payroll taxes — $371.40 of it to Massachusetts.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (2.476% on $15,000.00) | $371.40 |
| Employer payroll taxes | $5,003.40 |
| Total cost before benefits | $65,003.40 |
Per two-week payroll: $2,500.13. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Massachusetts unemployment tax (SUTA) for new employers
New employers (under three years) pay 2.42% plus the 0.056% Workforce Training Fund; new construction employers pay 6.08%. New employers don't pay the COVID-19 Recovery Assessment. The rate is 2.42% UI + 0.056% Workforce Training Fund.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Massachusetts on time and FUTA is 0.6% on the first $7,000. If Massachusetts ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Massachusetts payroll programs
- Paid Family and Medical Leave, employer share: The 2026 rate is 0.88%. With 25+ covered workers the employer pays at least 0.42% and may withhold up to 0.46%; smaller employers may withhold the whole employee share and pay nothing.
- Employer Medical Assistance Contribution (EMAC): new employers pay nothing for their first three years, then 0.12%, 0.24% and 0.34% on the first $15,000; employers with fewer than six employees are exempt.
What an employee costs in Massachusetts
| Salary | Federal employer taxes | Massachusetts employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $371.40 | $43,473.40 | 8.7% |
| $60,000 | $4,632.00 | $371.40 | $65,003.40 | 8.3% |
| $100,000 | $7,692.00 | $371.40 | $108,063.40 | 8.1% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Massachusetts?
About $43,473 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $371.40 of Massachusetts employer taxes, before benefits. That's $1,672.05 per two-week payroll.
How much does a $60,000 employee cost in Massachusetts?
About $65,003 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $371.40 of Massachusetts employer taxes, before benefits. That's $2,500.13 per two-week payroll.
How much does a $100,000 employee cost in Massachusetts?
About $108,063 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $371.40 of Massachusetts employer taxes, before benefits. That's $4,156.28 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $12,566 a year taken out of pay — federal income tax, their own Social Security and Medicare and Massachusetts taxes — and takes home $47,434 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,003.40 of employer taxes. See the employee's side line by line in the Massachusetts paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Massachusetts figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Mass.gov — Learn about UI contribution rates — new employers (registered less than 3 years) 2.42%; new construction 6.08% (checked 2026-09-28)
- Mass.gov — COVID-19 Recovery Assessment employer FAQs — new employers paying new employer rates are exempt
- M.G.L. c.151A §14L and §14 — Workforce Training Fund 0.056% of wages subject to contributions; wage base $15,000
- Mass.gov — PFML employer contribution rates and calculator — employers with 25+ covered individuals contribute the remaining 60% of medical (0.42%)
- Mass.gov — Employer Medical Assistance Contribution — years 1–3 exempt; year 4 0.12%; year 5 0.24%; year 6+ 0.34%
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Massachusetts SUTA rate for new employers?
2.476% in 2026 (2.42% UI + 0.056% Workforce Training Fund), on the first $15,000 of each employee's wages. New employers (under three years) pay 2.42% plus the 0.056% Workforce Training Fund; new construction employers pay 6.08%. New employers don't pay the COVID-19 Recovery Assessment.
What is the Massachusetts unemployment tax wage base for 2026?
$15,000 per employee per year.
How much does it cost to employ someone for $60,000 in Massachusetts?
About $65,003 a year before benefits: $4,632.00 of federal employer taxes and $371.40 for Massachusetts, at the new-employer rate with 5 employees.