Massachusetts (MA) - 2020
Massachusetts Effective 1/1/2020
| Minimum Wage | Massachusetts | Federal |
|---|---|---|
| Minimum Wage | $12.75 | $7.25 |
| Minimum Cash Wage (Tipped Employee) | $4.95 | $2.13 |
| Maximum Tip Credit | $7.80 | $5.12 |
| State Income Tax | Massachusetts | Federal |
| Wage Withholding | Tables | |
| Supplemental Wage / Bonus Rate | 5.0% | |
| Unemployment Insurance | Massachusetts | Federal |
| Maximum 2020 Taxable Earnings (Unchanged from 2019) | $15,000 | |
| Employee 2020 Deduction | None | |
| Employer 2020 Tax Rates(Plus 0.58% solvency assessment and 0.056% workforce training fund surcharge) | 0.94 - 14.37% | |
| Standard 2020 New Employer Rate(Plus 0.58% solvency assessment and 0.056% workforce training fund surcharge) | 2.42% | |
| Employer Medical Assistance Contribution 2020 Rates (0.12% fourth year of liability; 0.24% fifth year of liability; and 0.34% sixth year or later of liability) | 0.12 - 0.34% | |
| Voluntary Contribution Permitted | Yes | |
| Workforce Training Fund 2020 Rate | 0.056% |
Federal (FED) - 2020
Federal
| FICA (MEDICARE) | Federal |
|---|---|
| Maximum Taxable Earnings | No Limit |
| Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match) | 0.90% |
| Medicare Rate | 1.45% |
| FICA (SOCIAL SECURITY) | Federal |
| Maximum Taxable Earnings (Increased from $132,900 in 2019) | $137,700 |
| Employee / Employer Tax Rate (Unchanged from 2019) | 6.20% |
| FUTA (EMPLOYER-PAID) | Federal |
| Maximum Taxable Earnings | $7,000 |
| Percent of Taxable Wages | 6.00% |
| Maximum Credit | 5.40% |
| Normal Net Tax | 0.60% |
| Health Savings Accounts | Federal |
| Self-Only Contribution Limit (Employee / Employer) (Increased from $3,500 in 2019) | $3,550 |
| Family Contribution Limit (Employee / Employer) (Increased from $7,000 in 2019) | $7,100 |
| Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2019) | $1,000 |
| Mileage | Federal |
| Standard Mileage Rate | $0.575 |
| Standard Mileage Rate - Medical/Moving | $0.170 |
| Standard Mileage Rate - Charitable | $0.140 |
| Minimum Wage | Federal |
| Minimum Cash Wage (Tipped Employee) | $2.13 |
| Minimum Wage | $7.25 |
| Youth Minimum Wage | $4.25 |
| Maximum Tip Credit | $5.12 |
| Retirement Plans | Federal |
| Contribution Limit - 401(k) & 403(b) plans (Increased from $19,000 in 2019) | $19,500 |
| Catch-up Contribution Limit - 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019) | $6,500 |
| 403(b) Plans [15 year rule may allow additional] | $3,000 |
| SIMPLE Plans | $13,000 |
| SIMPLE Plans [age 50 or older can contribute additional] | $3,000 |
| 457(b) Plans | $19,500 |
| IRA - Traditional | $6,00 |
| IRA - Traditional [age 50 or older can contribute additional] | $1,000 |
| IRA - Roth | $6,000 |
| IRA - Roth [age 50 or older can contribute additional] | $1,000 |
| Supplemental Wage / Bonus Rates | Federal |
| Flat Rate Withholding Method (Unchanged from 2019) | 22% |
| Pay over $1 Million (Unchanged from 2019) | 37% |
Massachusetts State Resources
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