This week’s question comes from Michelle, a small business owner. I have not had to pay Massachusetts HICA tax all quarter. Now I have to pay it with the last payroll of the quarter. Why do we have to pay Massachusetts HICA tax this payroll? Answer: The Massachusetts...
In the recently released, Working Draft Directive 09-XX, State Filing Requirements for Forms in the 1099 Series, the Massachusetts Department of Revenue (DOR) proposes changes to the definition of “machine-readable form” and to the filing requirements for forms in the...
In the recently released, Working Draft Directive 09-XX, Requirements for Employers Filing Year-end Withholding Information, the Massachusetts Department of Revenue (DOR) proposes changes to the definition of “machine-readable form”. Employers who file fifty or more...
This week’s question comes from Marco, a small business owner in Massachusetts. I terminated an employee. He wants to get his paycheck before he leaves the building. How quickly must I pay a terminated employee? Answer: Under Massachusetts General Law (MGL) c. 149...
This week’s question comes from Matt, a business owner. I received my unemployment rate from the Commonwealth of Massachusetts, but don’t remember receiving my rate for Massachusetts Health Insurance Contribution Act Tax. How do I determine my tax rate for...
Vision Payroll has learned from informal discussions with the Massachusetts Division of Unemployment Assistance that some taxpayers may have incorrectly received letters indicating that they were exempt from filing the Fair Share Contribution Report for 2009. As a...
This week’s question comes from Carolyn, a business owner. I recently hired some new employees. Am I required to file Massachusetts Form 1700-HI? Answer: Employers in Massachusetts should count the number of employees who worked or received pay for any part of the pay...
Masschusetts DD 09-2, Personal Income Tax Treatment of Employer-Provided Health Insurance Coverage for an Employee’s Former Spouse
The Internal Revenue Code of 1986 as amended (IRC) provides in §106 for an exclusion from income for employer-provided health insurance that covers the employee, the employee’s spouse, the employee’s children, and the employee’s qualifying relatives. Prop. Treas. Reg....
The Commonwealth of Massachusetts Department of Revenue has released a working draft of TIR 09-1, Individual Mandate Penalties for Tax Year 2009, which would provide the penalties in 2009 for adults without health insurance. Under the working draft, adults with annual...
This week’s question comes from Nicole, an office manager. Our business is formed as two entities, an S corporation and a partnership. We’re located in Massachusetts. Do I now need to withhold income tax on distributions to partners and S corporation shareholders?...
In Mullally, et al. v. Waste Management of Massachusetts, Inc., SJC-10181 (Mass. 11/6/2008), the Supreme Judicial Court of the Commonwealth of Massachusetts (SJC) ruled that the defendant (Waste Management) violated Massachusetts law by “calculating overtime wages...
The office of Massachusetts Attorney General Martha Coakley has cited a Whitinsville, Massachusetts McDonald’s franchise for child labor law violations. After receiving complaints, auditors found that 16 and 17-year olds were working between the hours of midnight and...
This week’s question comes from Mel, a small-business owner. I’ve heard that the Massachusetts HIRD report must now be filed on a quarterly basis. Is the report due November 15 for the third quarter? Answer: The Health Insurance Responsibility Disclosure (HIRD)...
The Commonwealth of Massachusetts recently promulgated a new regulation, 201 CMR 17.00, titled Standards for The Protection of Personal Information of Residents of the Commonwealth. The purpose of the regulation is to implement “the provisions of M.G.L. c. 93H...
This week’s question comes from Harold, a business owner. I own a business in Massachusetts. Can I switch from a weekly to a bi-weekly pay period? Answer: Under Massachusetts law it is allowable to change to a bi-weekly pay period as long as employees are provided...
This week’s question comes from Mark, owner of an import company. I receive the same salary every week. All year, my Massachusetts income tax withholding has been the same. Now it’s gone up two weeks in a row. Why did this happen? Answer: In Massachusetts, a deduction...
This week’s question comes from Louisa, an HR manager: We have individuals who perform services for us. Does Massachusetts have any laws to determine if these individuals are our employees or independent contractors? Answer: In Massachusetts General Laws (MGL), c....
In TIR 08-8: Sales/Use Tax, Withholding and Administrative Changes Contained in Chapter 182 of the Acts of 2008, the Massachusetts Department of Revenue (DOR) commented on the changes required by the new law. For withholding purposes, the law allows the DOR to require...
The Massachusetts Department of Revenue (DOR) has clarified its position on the deductibility of 401(k) contributions. In Income Tax Directive 08-3, effective for 2008 and later years, the DOR denied deductions for 401(k) contributions for partners and self-employed...
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