Question 1

Is PEO registration or licensing required in Massachusetts?

Accepted Answer

Yes, but for unemployment tax purposes only. Employee leasing companies must register under 211 CMR 66. There is no separate license, no bond, and no net-worth test — the registration and reporting requirements exist for unemployment tax purposes only.

Question 2

What reporting duties do PEOs have in Massachusetts?

Accepted Answer

Each quarter the PEO files SUI contribution reports on behalf of its clients. By December 31 of each year the PEO must file an annual list of clients with their names, addresses, state SUI numbers, and FEINs. Employers with six or more employees are also swept into health-insurance contribution reporting, including Fair Share Contribution and HIRD filings.

Question 3

What is the SUI taxable wage base in Massachusetts?

Accepted Answer

The 2026 SUI taxable wage base in Massachusetts is $15,000 per employee, unchanged from 2025. The new employer rate is 2.42%.

Question 4

What paid family and medical leave obligations apply in Massachusetts?

Accepted Answer

Massachusetts has a PFML program. For 2026 the total premium is 0.84% of wages up to the Social Security cap, split equally between employer and employee, with an employer share of 0.42% for employers with 25 or more employees. Employers of fewer than 25 employees are exempt from the employer side of that split.

Question 5

What is the minimum wage in Massachusetts?

Accepted Answer

Massachusetts's statewide minimum wage for 2026 is $15.00 per hour.

Question 6

Does Massachusetts have an exclusive workers' compensation fund?

Accepted Answer

No. Workers' compensation in Massachusetts is a private-carrier market under the direction of the state's Department of Industrial Accidents.

Massachusetts PEO FAQs: Registration, Compliance, and Costs

Frequently Asked Questions