As an employer, you do not need to register yourself for withholding to pay your own income taxes. If you expect to owe more than $400 in MA income tax, you are required to make individual estimated income payments. Rules are a little different for farmers and fishermen.

You can find more information on the DOR website about estimated payments. As an employer, you are legally required to withhold MA personal income tax from the wages of any employee who resides or is employed in MA.

  1. First, register to collect withholding tax online with your Federal Employer ID number. In addition to collecting Form W-4 from each employee for federal purposes, collect the M-4 from each employee.
  2. File quarterly wages paid and unemployment insurance reports as required through the Department of Unemployment Assistance’s website.
  3. Provide each employee with a W-2 form by January 31st each year, and report all new hires or independent contractors within 14 days of hire. Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. Generally, an individual is an independent contractor if the employer has the right to control or direct only the result of the work and not what will be done and how it will be done. Provide each independent contractor who you paid $600 or more in a calendar year with a 1099 Form by January 31st each year.