Massachusetts (MA) - 2021
Massachusetts Effective 1/1/2021
| Minimum Wage | Massachusetts | Federal |
|---|---|---|
| Minimum Wage | $13.50 | $7.25 |
| Minimum Cash Wage (Tipped Employee) | $5.55 | |
| Maximum Tip Credit | $7.95 | $5.12 |
| State Income Tax | Massachusetts | Federal |
| Wage Withholding | Tables | |
| Supplemental Wage / Bonus Rate | 5.00% | |
| Unemployment Insurance | Massachusetts | Federal |
| Maximum 2020 Taxable Earnings (Unchanged from 2019) | $15,000 | |
| Employee 2020 Deduction | None | |
| Employer 2020 Tax Rates (Plus 0.69% solvency assessment and 0.056% workforce training fund surcharge) | 0.83 - 12.65% | |
| Standard 2020 New Employer Rate (Plus 0.76% 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 2021 Rate | 0.056% |
Federal (FED) - 2021
| Minimum Wage | Federal |
|---|---|
| Minimum Wage | $7.25 |
| Minimum Cash Wage (Tipped Employee) | $2.13 |
| Maximum Tip Credit | $5.12 |
| Youth Minimum Wage | $4.25 |
| FICA (MEDICARE) | Federal |
| Maximum Taxable Earnings | No Limit |
| Medicare Rate | 1.45% |
| Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match) | 0.90% |
| FICA (SOCIAL SECURITY) | Federal |
| Maximum Taxable Earnings (Increased from $137,700 in 2020) | $142,800 |
| 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% |
| Supplemental Wage / Bonus Rates | Federal |
| Flat Rate Withholding Method (Unchanged from 2020) | 22% |
| Pay over $1 Million (Unchanged from 2020) | 37% |
| Health Savings Accounts | Federal |
| Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020) | $3,600 |
| Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020) | $7,200 |
| Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020) | $1,000 |
| Pension Plans | Federal |
| Contribution Limit - 401(k) & 403(b) plans (Unchanged from 2020) | $19,500 |
| Catch-up Contribution Limit - 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019) | $6,500 |
Massachusetts State Resources
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