Massachusetts DOR Updates Employer Withholding Guidance

The Massachusetts Department of Revenue updated its “Withholding Taxes on Wages” guide, outlining employer responsibilities for withholding Massachusetts income tax from employee wages. The guidance reiterates that employers must withhold tax from all Massachusetts residents’ wages, regardless of work location, and from nonresidents’ wages for services performed in Massachusetts. The update emphasizes mandatory electronic filing and payment requirements for new businesses, payroll service providers, and employers with $5,000 or more in combined annual tax liability across specified tax types. Employers must maintain withholding records for at least three years and may be subject to penalties of up to 1 percent ...