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State Specific Updates

All Advisor Updates

Massachusetts

State Web Site:  www.massachusetts.gov

General Business Requirement:

Apply to the Secretary of the Commonwealth for a Certificate of Authority to conduct business in Massachusetts.
 
Business Entity Registration Form


Licensing/Registration:

Registration & reporting requirements for Unemployment Tax purposes only.

See: Massachusetts - Employee Leasing Regulations


Unemployment Insurance:

Massachusetts - UI Tax Registration Form

New Business Rate:  2.53%
Wage Limit:  $14,000
Employers Reporting Unit for SUTA  Contributions:  Client; PEO can submit reports, but must use client account number and experience rate.  Additional reporting requirements also apply.
See: Massachusetts - Employee Leasing Regulations

Agency Web Site - Massachusetts Labor and Workplace Development


State Taxes:

Massachusetts - Business Tax Registration (On-Line)

Agency Web Site - Massachusetts Department of Revenue


Workers’ Compensation:

Rating Bureau – Workers’ Compensation Rating and Inspection Bureau of Massachusetts

State Specific Requirements for PEO

Workers’ compensation coverage can be provided by the PEO or client/co-employer, using an MCP format; however, the PEO may be subject to additional requirements and conditions established by the Commissioner of Insurance.

See: Chapter 152: Section 14A. Employee leasing companies

Massachusetts - Workers' Compensation Employee Leasing Supplemental Application
    
Exclusive remedy benefits will apply to both PEO and client/co-employer in most cases, assuming all employees are covered.

Agency Web Site - Department of Industrial Accidents

Benefit Plans:

PEO and/or client can sponsor fully insured benefit plans; however, the Employer Surcharge for State-funded Health Costs under Massachusetts universal healthcare law is assessed at the client level.

See: Employer Fair Share Contributions On-Line Reporting and Payment System.

A PEO sponsored self-funded benefit plan is considered a MEWA and will be subject to state insurance regulations.

Agency Web Site - Massachusetts Division of Insurance