Payroll Cost per Employee in Massachusetts
2026 estimates — total employer cost including taxes and benefits
Min wage in Massachusetts: $15.00/hr | SUTA: 0.94–14.37% on first $15,000
Calculate Total Payroll Cost in Massachusetts
Payroll Tax Breakdown — Massachusetts 2026
| Tax / Cost | Rate / Rule | Annual Amount |
|---|---|---|
| Base salary | Per agreement | $74,250 |
| Social Security (employer) | 6.2% on first $168,600 | $4,604 |
| Medicare (employer) | 1.45% of all wages | $1,077 |
| FUTA (federal unemployment) | 0.6% on first $7,000 | $42 |
| Massachusetts SUTA | 0.94–14.37% on first $15,000 | $600 |
| Benefits (health, 401k, etc) | ~18% of salary (typical) | $13,365 |
| Total Employer Cost | $94,315 | |
Based on $74,250 median salary in Massachusetts. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: Paid Family and Medical Leave: 0.88% of wages.
Payroll Requirements in Massachusetts
1. Massachusetts Payroll Tax & Compliance Overview
Massachusetts payroll costs are above the national average. Key employer requirements: state income tax withholding (5% flat rate), state unemployment insurance (SUTA: 0.94–14.37% on first $15,000), plus the standard federal obligations (FICA 7.65%, FUTA up to $420/employee). Paid Family and Medical Leave: 0.88% of wages.
2. Top Tips for Massachusetts Employers
Massachusetts employers: use payroll software like Gusto, QuickBooks Payroll, or Rippling to automate state-specific tax calculations. These typically cost $40–$150/month for small businesses — far less than the penalty risk of manual payroll errors. Set up pay-as-you-go workers' comp tied to each payroll run to eliminate audit surprises.
3. Key Massachusetts Payroll Facts
- Minimum wage: $15.00/hr
- State income tax: 5% flat rate
- State unemployment (SUTA): 0.94–14.37% on first $15,000
- Additional: Paid Family and Medical Leave: 0.88% of wages
Run Massachusetts Payroll Automatically
Automated payroll software handles Massachusetts tax calculations, filings, and W-2s for $40–$150/month.
Payroll Software Cost Comparison — Massachusetts 2026
At $7,860/month total employer cost, automating payroll for $74,250 median salary employees costs 27% above base salary. Software adds just 0.1–0.3% but eliminates costly compliance errors.
| Software | Base Price | Per Employee |
|---|---|---|
| Gusto Top pick | $46/mo | +$6/emp/mo |
| QuickBooks Payroll Core | $45/mo | +$6/emp/mo |
| ADP Run Essentials | ~$65/mo | +$4/emp/mo |
| Rippling | $35/mo | +$8/emp/mo |
Prices as of 2026. All four platforms handle Massachusetts state tax filings automatically. 10-employee team example: Gusto = $106/mo, QuickBooks = $105/mo, ADP ≈ $105/mo, Rippling = $115/mo.
Frequently Asked Questions
Massachusetts Payroll Summary
- →Avg salary: $74,250/yr
- →Total cost: $94,315/yr
- →Overhead rate: ~27% above salary
- →Min wage: $15.00/hr
- →State income tax: 5% flat rate