Payroll Massachusetts, Unique Aspects of Massachusetts Payroll Law and Practice

The Massachusetts State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Department of Revenue

51 Sleeper St.

Boston, MA 02205

(617) 887-6367

(800) 392-6089 (in state)

http://www.state.ma.us/dor/dorpg.htm

Massachusetts allows the use of the federal W-4 form if exemptions claimed are the same for state and federal. Otherwise, you must use “M4 Massachusetts Employee’s Withholding Exemption Certificate” for Massachusetts income tax withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Massachusetts cafeteria plans are not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Massachusetts supplemental wages are required to be aggregated for the state income tax withholding calculation.

You must file your Massachusetts State W-2s by magnetic media if you are required to file your federal W-2s by magnetic media.

The Massachusetts State Unemployment Insurance Agency is:

Division of Employment Security

Charles F. Hurley Bldg.

19 Staniford St., 5th Fl. DET

Boston, MA 02114-2589

(617) 626-6855

http://www.detma.org/

The State of Massachusetts taxable wage base for unemployment purposes is wages up to $14,000.00.

Massachusetts requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in Massachusetts for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Massachusetts State Agency charged with enforcing the state wage and hour laws is:

Department of Labor and Industries

Fair Labor and Business Practices Division

200 Portland St.

Boston, MA 02114

(617) 727-3465

http://www.ago.state.ma.us/

The minimum wage in Massachusetts is $6.75 per hour.

The general provision in Massachusetts concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

Massachusetts State new hire reporting requirements are that every employer must report every new hire and rehire and contractors over $600. The employer must report the federally required elements of:

  • Employee’s name
  • date of hire or contract
  • Employee’s address
  • Employee’s social security number
  • Employer’s name
  • Employers address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 14 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or electronically.

There is a $25.00 penalty for a late report and $500 for conspiracy in Massachusetts.

The Massachusetts new hire-reporting agency can be reached at 800-332-2733 or 617-626-4154 or on the web at http://www.cse.state.ma.us/.

Massachusetts does not allow compulsory direct deposit.

Massachusetts requires the following information on an employee’s pay stub:

  • Gross and Net Earnings
  • Employer’s and employee’s name.
  • payment date
  • amount and nature of deductions
  • increases
  • straight time and overtime pay
  • hours worked
  • itemized deductions

Massachusetts requires that employee be paid biweekly or weekly; semimonthly or biweekly for FLSA-exempts or salaried employees (monthly if they agree).

Massachusetts requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed six days if workweek is 5 or 6 days; 7 days after pay period if workweek is 7 days or less than 5 days.

Massachusetts payroll law requires that involuntarily terminated employees must be paid their final pay immediately and that voluntarily terminated employees must be paid their final pay by the next regular payday (if there is none, the next Saturday) or by mail if employee requests it.

Deceased employee’s wages of $100 must be paid to the surviving spouse, adult child, or parent (in that order) 30 days after death and if there is no will.

Escheat laws in Massachusetts require that unclaimed wages be paid over to the state after three years.

The employer is further required in Massachusetts to keep a record of the wages abandoned and turned over to the state for a period of 5 years.

Massachusetts’s payroll law mandates no more than $4.125 may be used as a tip credit.

In Massachusetts the payroll laws covering mandatory rest or meal breaks are only that all employees must have 30 minutes rest after six hours of work.

Massachusetts’s statute requires that wage and hour records be kept for a period of not less than two years. These records will normally consist of at least the information required under FLSA.

The Massachusetts agency charged with enforcing Child Support Orders and laws is:

Massachusetts Department of Revenue

Child Support Enforcement Division

51 Sleeper St.

P.O. Box 9492

Boston, MA 02205-9492

(800) 332-2733

http://www.cse.state.ma.us/

Massachusetts has the following provisions for child support deductions:

  • When to start Withholding? Next payday more than 3 days after notice.
  • When to send Payment? Within 3 days of Payday.
  • When to send Termination Notice? Within 3 days of payday.
  • Maximum Administrative Fee? $1 per payment.
  • Withholding Limits? Federal Rules under CCPA.

Please note that this article is not updated for changes that can and will happen from time to time.

Payroll Nevada, Unique Aspects of Nevada Payroll Law and Practice

Nevada has no State Income Tax. There for there is no State Agency to oversee withholding deposits and reports. There are no State W2’s to file, no supplement wage withholding rates and no State W2’s to file.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Nevada cafeteria plans are taxable for unemployment insurance purposes. 401(k) plan deferrals are taxable unemployment purposes.

Nevada doesn’t have income tax.

The Nevada State Unemployment Insurance Agency is:

Employment Security Division

500 E. Third St.

Carson City, NV 89713

(775) 687-4510

http://www.detr.state.nv.us/es/es_index.htm

The State of Nevada taxable wage base for unemployment purposes is wages up to $22,000.00.

Nevada has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in Nevada for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Nevada State Agency charged with enforcing the state wage and hour laws is:

Department of Business and Industry

Office of Labor Commissioner

555 East Washington Avenue

Las Vegas, NV 89101

(702) 486-2750

http://www.laborcommissioner.com/

The minimum wage in Nevada is $5.15 per hour.

The general provision in Nevada concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 8-hour or 40-hour week (10-hour day, 4-day week if agreed to).

Nevada State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

  • Employee’s name
  • Employee’s address
  • Employee’s social security number
  • Employer’s name
  • Employers address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or electronically.

There is a $25.00 penalty for a late report in Nevada.

The Nevada new hire-reporting agency can be reached at 888-639-7241 or 775-684-8685 or on the web at [http://detr.state.nv.us/uicont/uicont_newhire.htm]

Nevada does not allow compulsory direct deposit

Nevada requires the following information on an employee’s pay stub:

  • itemized deductions
  • Nevada requires that employee be paid no less often than semimonthly; FLSA-exempt employees paid by out-of-state employers can be paid monthly.

    Nevada requires that the lag time between the end of the pay period and the payment of wages earned from 1st-15th, pay by end of month; 16th-end of month, pay by 15th of next month to the employee.

    Nevada payroll law requires that involuntarily terminated employees must be paid their final pay immediately and that voluntarily terminated employees must be paid their final pay earlier of next regular payday or 7 days.

    Deceased employee’s wages must be paid when normally due to the surviving spouse or distributee after affidavit of right is shown; 40 days after death; and if the estate is not over $20,000.

    Escheat laws in Nevada require that unclaimed wages be paid over to the state after one year.

    There is no provision in Nevada law concerning record retention of abandoned wage records.

    Nevada payroll law mandates no tip credit may be used against State minimum wage.

    There is no provision in Nevada law concerning tip credits against State minimum wage.

    In Nevada the payroll laws covering mandatory rest or meal breaks are only that all employees must have 30 minutes rest after eight hours of work; 10 minutes rest after 4 hours.

    Nevada statute requires that wage and hour records be kept for a period of not less than two years. These records will normally consist of at least the information required under FLSA.

    The Nevada agency charged with enforcing Child Support Orders and laws is:

    Child Support Enforcement Program

    Human Resources Division

    100 N. Carson St.

    Capitol Complex

    Carson City, NV 89701-4717

    (702) 687-4744

    [http://www.hr.state.nv.us/]

    Nevada has the following provisions for child support deductions:

    • When to start Withholding? 14 days after receipt of order.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? “Promptly”
    • Maximum Administrative Fee? $3 per payment; $2 per payment to state treasurer.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll Iowa, Unique Aspects of Iowa Payroll Law and Practice

    The Iowa State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

    Department of Revenue

    Income Tax Division

    Hoover State Office Bldg.

    P.O. Box 10457

    Des Moines, IA 50306-0457

    (515) 281-3114

    (800) 367-3388 (in state)

    http://www.state.ia.us/tax

    Iowa requires that you use Iowa form “IA W-4, Centralized Employee Registry Reporting Form/Employee Withholding Allowance Certificate” instead of a Federal W-4 Form for Iowa State Income Tax Withholding.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Iowa cafeteria plans are not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

    In Iowa supplemental wages are taxed at a 6% flat rate.

    State W-2s are not applicable in the state of Iowa.

    The Iowa State Unemployment Insurance Agency is:

    Department of Workforce Development

    1000 E. Grand Ave.

    Des Moines, IA 50319-0209

    (515) 281-5387

    http://www.iowaworkforce.org/wc/index.html

    The State of Iowa taxable wage base for unemployment purposes is wages up to $19,700.00.

    Iowa has optional reporting of quarterly wages on magnetic media.

    Unemployment records must be retained in Iowa for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

    The Iowa State Agency charged with enforcing the state wage and hour laws is:

    Iowa Workforce Development

    Labor Services Division

    1000 East Grand Ave.

    Des Moines, IA 50319-0209

    (515) 281-5387

    http://www.iowaworkforce.org//labor/index.html

    The minimum wage in Iowa is $5.15 per hour.

    There is also no general provision in Iowa State Law covering paying overtime in a non-FLSA covered employer.

    Iowa State new hire reporting requirements are that every employer must report every new hire and rehire; independent contractors over $600. The employer must report the federally required elements of:

    • Employee’s name
    • Employee’s date of birth.
    • Employee’s health insurance.
    • Employee’s address
    • Start date of contract.
    • Employee’s social security number
    • Employer’s name
    • Employers address
    • Employer’s Federal Employer Identification Number (EIN)

    This information must be reported within 15 days of the hiring or rehiring.

    The information can be sent as a W4 or equivalent by mail, fax or electronically.

    There is a penalty contempt of court for a late report in Iowa.

    The Iowa new hire-reporting agency can be reached at 515-281-533 or on the web at http://icer.dhs.state.ia.us/.

    Iowa does not allow compulsory direct deposit.

    Iowa requires the following information on an employee’s pay stub:

    • Gross and Net Earnings
    • straight time and overtime pay
    • hours worked
    • itemized deductions

    The State Wage and Hour Law provisions concerning pay stub information in Iowa is that it must be provided within 10 days of employee’s request, only once a year unless earnings, hours, or deductions are changed.

    Iowa requires that employee be paid no less often than monthly, semimonthly, or biweekly.

    Iowa requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed twelve days after pay period; excluding Sundays and holidays.

    Iowa payroll law requires that involuntarily terminated employees must be paid their final pay by their next regular payday; 30 days for commissions and that voluntarily terminated employees must be paid their final pay by the next regular payday; 30 days for commissions or by mail if employee requests it.

    There is no provision in Iowa law concerning paying deceased employees.

    Escheat laws in Iowa require that unclaimed wages be paid over to the state after one year.

    The employer is further required in Iowa to keep a record of the wages abandoned and turned over to the state for a period of 4 years.

    Iowa payroll law mandates no more than 40% of minimum wage may be used as a tip credit.

    In the Iowa payroll law there is no provision covering required rest or meal periods.

    There is no provision in Iowa law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.

    The Iowa agency charged with enforcing Child Support Orders and laws is:

    Child Support Recovery Unit

    Department of Human Services

    Hoover Bldg., 5th Fl.

    Des Moines, IA 50319

    (515) 242-3237

    (888) 229-9223

    http://www.dhs.state.ia.us/dhs2005/dhs_homepage/financial_support/child_support/index.html

    Iowa has the following provisions for child support deductions:

    • When to start Withholding? 10 days after receipt of order.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? “Promptly.”
    • Maximum Administrative Fee? $2 per payment.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.