MA · Payroll tax 2026
The true cost of hiring in Massachusetts
Estimate what a W-2 employee costs in Massachusetts and compare it with a 1099 contract using sourced 2026 payroll-tax defaults that you can adjust to your assigned rate.
Estimate a Massachusetts hire
Pre-filled with a 2.42% base new-employer rate. Adjust SUI, salary, benefits, and the 1099 rate to fit your hire.
Results update instantly. Your values stay in this browser.
A W-2 hire in Massachusetts costs more than salary. Employers pay federal FICA and FUTA plus state unemployment insurance. For 2026, HiringMath uses a 2.42% base new-employer rate on the first $15,000 of wages, producing up to about $363 of state UI tax per worker before experience-rating or account-specific adjustments. Massachusetts taxes wage income, which creates a withholding obligation but is not an employer-paid tax. PFML employer share 0.42% (25+ employees). The calculator below combines those statutory items with editable benefits, workers' compensation, and overhead, then compares the result with a 1099 contract.
Massachusetts employer tax facts
| Item | MA |
|---|---|
| Base new-employer SUI rate | 2.42% |
| SUI taxable wage base | $15,000 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | Yes |
| Worker classification test | Strict ABC test |
Extra employer taxes: PFML employer share 0.42% (25+ employees).
- PFML (medical leave) — Employer share 0.42% (employers with 25+ covered individuals).
Example: a $75,000 hire in Massachusetts
At a $75,000 base salary with typical benefits, a W-2 employee in Massachusetts costs an employer $99,758 per year — $24,758 above base pay. An equivalent 1099 contract at $75,000 would cost $24,758 less; the breakeven contract rate is $99,758.
Misclassification risk in Massachusetts
Test: Strict ABC test
Strict ABC framework; tax, wage, and other civil exposure may apply.
Penalties by stateCompare nearby rates
Massachusetts's 2.42% new-employer SUI rate sits near Hawaii (2.4%), Oregon (2.4%), Missouri (2.38%), Wyoming (2.35%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Common questions
Massachusetts hiring-cost FAQ
What SUI rate does HiringMath use for Massachusetts?
The calculator starts with a 2.42% base new-employer rate, applied to the first $15,000 of each employee's 2026 wages. Your assigned rate can differ because of industry, surcharges, and claims history, so replace the default with the rate on your state notice when available.
Does Massachusetts have a state income tax?
Yes. Massachusetts taxes wage income. Employers withhold it from employee pay, but it does not directly increase the employer's payroll-tax cost.
What should employers know about worker classification in Massachusetts?
Strict ABC framework; tax, wage, and other civil exposure may apply. This is a planning summary, not legal advice; confirm classification decisions with the relevant agency or counsel.