New Hire Checklist for Massachusetts Employers

Hiring someone for the first time — or hiring again after a gap — involves more paperwork than most people expect. Miss something and you could face penalties, lose an unemployment case, or mess up someone’s tax withholding. This checklist covers every step.

Before Day One

Verify Work Authorization (Form I-9)

You must complete Form I-9 for every employee, including U.S. citizens. The employee fills out Section 1 on or before their first day. You review original identity/work authorization documents and complete Section 2 within 3 business days of the start date.

Keep I-9s separate from personnel files. You must retain them for 3 years after hire or 1 year after termination, whichever is later.

Obtain a Federal EIN

If you don’t have one already, apply for an Employer Identification Number (EIN) at irs.gov. Free, instant online. You’ll need it for all payroll tax filings.

Register with the Massachusetts DOR

Register for withholding tax at MassTaxConnect (mtc.dor.state.ma.us). You’ll need your EIN. Once registered, you’ll file and pay state income tax withholding on a schedule determined by your liability (monthly, quarterly, or annual).

Register for MA Unemployment Insurance (SUTA)

Register with the MA Department of Unemployment Assistance at mass.gov/dua. New employers are assigned a rate of 2.42% for the first few years.

Set Up PFML Contributions

PFML is administered through MassTaxConnect — it’s filed alongside your withholding tax on the same schedule. Make sure your payroll system is set up to withhold the correct employee amount and remit your employer share (if applicable).

On or Before the First Day

Collect Form W-4 (Federal Withholding)

The employee completes a 2025 W-4 to tell you their federal withholding elections. Without one, you must withhold as single with no adjustments (the maximum rate). Keep the signed W-4 on file — you don’t file it with the IRS.

Collect MA Form M-4 (State Withholding)

Massachusetts has its own withholding form, the M-4. Similar to the W-4 — the employee claims exemptions and additional withholding. Without one, withhold as single with zero exemptions.

Provide PFML Notice

Massachusetts law requires you to provide each new employee with a written notice about PFML benefits within 30 days of hire. The notice must include:

• The contribution rates
• The employee’s rights under the law
• Contact info for the DFML

Download the current notice template from the MA DFML website.

Provide MA Wage Theft Prevention Act Notice

You must provide new employees with written notice of their:

• Rate of pay and basis (hourly, salary, etc.)
• Overtime rate if applicable
• Regular payday
• Employer’s legal name, address, and phone number

Use the MA ATTN form or create equivalent written documentation. Get a signed copy.

Within 7 Days of Hire

Report New Hire to the State

Massachusetts requires employers to report every new hire to the MA Department of Revenue within 7 days. You can do this at mass.gov/newhire or through most payroll software. You’ll need:

• Employee name, address, SSN
• Date of hire
• Employer EIN

Penalty for late reporting: $25 per employee. $500 if the failure is intentional.

Within 30 Days of Hire

Add to Workers’ Compensation Policy

Contact your workers’ comp insurer and add the new employee. Most policies require notification within 30 days. Failure to maintain coverage is a criminal offense in Massachusetts.

Set Up Direct Deposit (Optional but Expected)

Most employees expect direct deposit. While Massachusetts law doesn’t require it, you cannot force employees to use it — they can always elect a paper check.

Enroll in Benefits (If Applicable)

If you offer health insurance or retirement plans, provide enrollment materials and any required ERISA notices. Most plans have a waiting period of 30–90 days.

Ongoing Payroll Obligations

Once you’re up and running, here’s what you’re responsible for each pay period:

• Withhold federal income tax, state income tax, SS, Medicare, PFML
• Remit federal deposits to the IRS (semi-weekly or monthly depending on deposit schedule)
• Remit MA withholding and PFML via MassTaxConnect (monthly or quarterly)
• File quarterly Form 941 (federal) and MA WR-1 (state)
• File annually W-2s (by January 31) and MA W-2 transmittal

Quick Reference: What Gets Filed Where

The OtterDesk payroll calculator helps you run the numbers for every new hire — withholding, FICA, PFML, and full employer cost — before you even make an offer.