Massachusetts · 2026 employer costs
The cost of an employee in Massachusetts
At a $75,000 salary, the fully-burdened cost of an employee in Massachusetts is about $81,220, the 25th-lowest of 51 — above South Dakota ($81,204) and Ohio ($81,186), below Maine ($81,234) and North Carolina ($81,279).
Massachusetts's 2026 state unemployment (SUI) tax applies to the first $15,000 of each employee's wages, at a 2.13% new-employer rate. Experienced employers pay 0.94%–14.37% based on their layoff history. Beyond SUI, Massachusetts employers also deal with Workforce Training Fund (WTFP), Employer Medical Assistance Contribution (EMAC), and Paid Family & Medical Leave (PFML). Employee-funded PFML employee share is excluded below — it is withheld from the worker, not an employer cost.
Massachusetts SUI and FUTA quick rates
2026 employer-side planning defaults, before experience-rating adjustments.
- Default SUI rate
- 2.13%
- New-employer rate; use your notice rate if available.
- SUI taxable wage base
- $15,000
- Maximum wages subject to Massachusetts SUI per employee.
- New-employer SUI maximum
- $320
- Taxable wage base × the new-employer rate; experience rates vary.
- Net FUTA maximum
- $42
- Assumes the full standard credit after timely state UI payment: 0.60% on the first $7,000.
Review the federal FUTA sources and Massachusetts rate sources.
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How the $6,220 on top of salary breaks down
- Social Security75%
- Medicare17%
- FUTA1%
- State SUI5%
- WTFP0%
- Workers' comp2%
| Cost item | Rate or assumption | annual amount |
|---|---|---|
| Base wages | Annual rate basis | $75,000 |
| Social Security (employer) | 6.20% up to $184,500 | $4,650 |
| Medicare (employer) | 1.45% (no cap) | $1,088 |
| FUTA | 0.60% on first $7,000 | $42 |
| State unemployment (SUI/MA) | 2.13% up to $15,000 | $320 |
| Workforce Training Fund (WTFP) | 0.06% up to $15,000 | $8 |
| Workers' compensation (est.)est. | ~0.15% (office/clerical est.) | $113 |
| Total annual cost | $81,220 |
$75,000 annualized wages · 2,080 paid hours · Massachusetts · 1 in role · 1 total employer headcount · tax year 2026.
Health $0/year · retirement 0% · other benefits 0% · payroll/PEO fees $0/year.
- Employer Medical Assistance Contribution (EMAC): Up to 0.34% (year 6+) on first $15,000 (= $51/employee/yr max). Phase-in: years 1-3 exempt, year 4 = 0.12%, year 5 = 0.24%. Applies to employers with >=6 avg employees in business >=3 years. NEW employers are exempt, so it is not included in the new-employer cost shown above.
- Paid Family & Medical Leave (PFML): No standard employer share is included below the 25-employee threshold. Confirm small-employer rules for your workforce.
Employer-paid costs only — employee withholdings (state income tax, SDI, employee-funded leave) are excluded; these are costs on top of wages, not deductions. Estimate for budgeting, not tax advice. Defaults use the new-employer SUI rate and an office-class workers'-comp estimate. See methodology.
Massachusetts employer payroll taxes (2026)
- State income tax on wages
- Yes
- State unemployment (SUI) wage base
- $15,000
- SUI new-employer rate
- 2.13%
- SUI rate range (experienced)
- 0.94% – 14.37%
- FUTA (federal unemployment)
- 0.60% on first $7,000Standard 0.6% net rate (no projected credit reduction).
- Workforce Training Fund (WTFP)
- 0.06%Flat 0.056% on first $15,000 of wages (~$8.40/employee/yr) for all UI-liable employers, including new employers.
- Employer Medical Assistance Contribution (EMAC)
- see noteUp to 0.34% (year 6+) on first $15,000 (= $51/employee/yr max). Phase-in: years 1-3 exempt, year 4 = 0.12%, year 5 = 0.24%. Applies to employers with >=6 avg employees in business >=3 years. NEW employers are exempt, so it is not included in the new-employer cost shown above.
- Paid Family & Medical Leave (PFML)
- see note2026 total PFML contribution 0.88% of wages (capped at the SS wage base $184,500). Employers with >=25 covered individuals pay >=60% of the medical-leave portion = 0.42% of wages; the 0.18% family-leave portion is fully employee-funded. Employers with <25 covered individuals owe $0 employer share, so it is not included in the new-employer cost shown above.
- Workers' comp (office class, est.)
- ~$0.1–$0.2 / $100Estimate — set by your carrier and experience rating.
Excluded (employee-paid, not an employer cost): PFML employee share.
2026 tax year · each Massachusetts figure carries a primary and an independent source (see sources) · last verified June 2026.
Worked examples
Default employer-cost estimates in Massachusetts, using 2026 rates:
| Salary | Added | Total cost | Burden |
|---|---|---|---|
| $45,000 | $3,880 | $48,880 | +8.6% |
| $75,000 | $6,220 | $81,220 | +8.3% |
| $120,000 | $9,730 | $129,730 | +8.1% |
Hourly wage examples
Assumes 40 hours/week for 52 paid weeks.
| Base rate | Burden / hr | Loaded / hr | Burden |
|---|---|---|---|
| $20.00 | $1.74 | $21.74 | +8.7% |
| $40.00 | $3.30 | $43.30 | +8.2% |
Both tables include Social Security (6.20% to $184,500), Medicare, net FUTA, Massachusetts SUI at the new-employer rate (2.13%), automatically modeled state employer charges, and an office workers'-comp estimate. They assume a total employer headcount of one and exclude optional benefits. 2 employer-specific or size-gated items are not included; review the fact sheet and calculator notices.
Massachusetts employer cost FAQ
How much does it cost to employ someone in Massachusetts?
Beyond salary, a Massachusetts employer pays Social Security and Medicare (7.65% combined), FUTA, and Massachusetts state unemployment on the first $15,000 of wages. For a $75,000 salary that totals about $81,220 (+8.3%) before optional benefits.
What is the Massachusetts SUI / SUTA rate for 2026?
The 2026 Massachusetts taxable wage base is $15,000. New employers pay 2.13%; experienced employers range 0.94%–14.37% based on their claims history.
Does Massachusetts have a paid family leave program employers pay into?
Yes — Paid Family & Medical Leave (PFML). The 2026 contribution is 0.88% of wages (capped at $184,500 of wages). Employers with 25 or more employees owe the employer share — about 0.42% of wages; smaller employers withhold the employee portion but owe no employer share.
How much does an employer pay for payroll tax?
For a $75,000 salary in Massachusetts, an employer pays about $6,220 in payroll taxes and workers' comp on top of wages — roughly 8.3% — for a fully-burdened cost near $81,220. The Massachusetts SUI rate is the main variable.
How much does a $20 an hour employee cost an employer?
A $20/hour employee (about $41,600 a year) in Massachusetts costs an employer roughly $45,215 fully burdened — about 8.7% over wages — once Social Security, Medicare, FUTA, Massachusetts SUI and workers' comp are added.
States with a similar cost of employment
Read how the burden stack works in our labor burden rate guide, compare 1099 vs W-2 employer costs, and see every figure sourced in our methodology.