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REMOTE EMPLOYEES

Hiring a remote employee in Massachusetts

Your company is in another state and one employee lives and works from home in Massachusetts. Which state's taxes apply, unemployment, paid leave and Massachusetts's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated September 28, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Massachusetts at a glance

Income tax
Massachusetts withholding
Reciprocity
None
Unemployment
$15,000 wage base, 2.42% new employer
Paid leave
Massachusetts Paid Family and Medical Leave (PFML)
New hire report
Within 14 days

Which state's taxes apply

Work state
Massachusetts taxes wages for work done in Massachusetts. Withhold Massachusetts income tax on the employee's wages.Source: DOR, Circular M: Income Tax Withholding Tables at 5.0% Effective January 1, 2026 (Rev. 12/25, PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form M-4Source: DOR, Withholding Tax Forms (opens in a new tab), checked October 5, 2026
Reciprocity
No state exempts Massachusetts residents from its withholding by reciprocity.Source: DOR, Directive 91-4: Multiple State Withholding Requirements (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Massachusetts for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Massachusetts
Massachusetts sets no day count before a nonresident's wages for work there are withheld.Source: Massachusetts DOR, 830 CMR 62.5A.1, Non-resident Income Tax (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Massachusetts: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Massachusetts: the employee works from home there, so the work is localized in Massachusetts.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Massachusetts, so the work is localized in Massachusetts: pay Massachusetts unemployment tax, not your company state's.

Agency
Department of Unemployment Assistance (DUA)Source: DUA, Employer contributions to unemployment (opens in a new tab), checked October 5, 2026
Wage base
$15,000 Fixed by lawSource: DUA, The Employer's Guide to Unemployment Insurance (PDF) (opens in a new tab), checked October 5, 2026
New employer rate
2.42% 2.42% for the first three years (6.08% in construction), plus the 0.056% Workforce Training Fund contribution Surcharges not included Construction 6.08%Source: DUA, Employer contributions to unemployment (opens in a new tab), checked October 5, 2026

Open the account: Massachusetts payroll tax registration

Massachusetts Paid Family and Medical Leave (PFML) (opens in a new tab)

Status
ContributingSource: DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab), checked October 5, 2026
Total rate
0.88%Source: DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab), checked October 5, 2026
Employee share
Up to 0.46%Source: DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab), checked October 5, 2026
Employer share
0.42%Source: DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab), checked October 5, 2026
Small employers
24 or fewer employees: no employer share Counted as covered individuals in the Massachusetts workforce, some 1099-MISC workers includedSource: DFML, Paid Family and Medical Leave employer contribution rates and calculator (updated October 1, 2026) (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on Massachusetts payroll tax registration.

Massachusetts employer rules

Employment law applies where the employee works, so these follow the employee into Massachusetts.

Final pay
Fired: In full on the day of discharge Quit: In full on the next regular payday (the following Saturday if there is none)Source: Massachusetts General Laws c. 149, §148, Payment of wages (opens in a new tab), read from an archived copy dated September 28, 2026 (opens in a new tab)
Pay frequency
Weekly or biweekly, within 6 days after the pay period ends (7 days for a 7-day week). Executive, administrative and professional staff and salaried employees may be paid biweekly or semi-monthly, or monthly at the employee's option.Source: Massachusetts General Laws c. 149, §148, Payment of wages (opens in a new tab), read from an archived copy dated September 28, 2026 (opens in a new tab)
Pay notice
No general pay-rate notice at hire. Employers with 25+ employees in Massachusetts: pay range in every job posting, to an applicant or employee on applying, promotion, transfer or starting a new position, and on request for a current position (M.G.L. c. 149, s. 105F, from 2025-10-29). Written notice before paying the $6.75 service rate.Source: Attorney General, Pay Transparency in Massachusetts (opens in a new tab), checked October 5, 2026
New hire reporting
Within 14 days of the start date.Source: DOR Child Support Services Division, Learn about the New Hire Reporting Program (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employersSource: Trial Court Law Libraries, Massachusetts law about hiring employees (updated July 17, 2026) (opens in a new tab), checked October 5, 2026
Sick leave
Paid sick leave required, from 11 employees, counted in all states. Unpaid sick leave required, from the first employee.Source: Attorney General, Earned Sick Time (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Massachusetts, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Massachusetts

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it. State paid leave contributions are withheld, too.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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