How do I register as a household employer in Massachusetts?

Start with a federal EIN, then register with Massachusetts for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Massachusetts's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Massachusetts income tax at your nanny's request, register separately with the state revenue department for a withholding account. Register for Massachusetts Paid Family and Medical Leave (PFML), usually a separate account from unemployment insurance.

What payroll taxes does Massachusetts charge for a household employee?

Federal FICA and FUTA, Massachusetts SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Massachusetts SUTA: 1.118% - 17.086% plus Massachusetts's separate workforce training fund on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Plus Massachusetts Paid Family and Medical Leave (PFML) contributions, usually a small percentage of wages and mostly employee-funded.

What are Massachusetts's minimum wage and overtime rules for nannies?

At least $15.00 an hour for a nanny in Massachusetts. That is Massachusetts's own minimum wage, above the federal $7.25 floor. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Massachusetts?

No. Massachusetts does not let an employer require direct deposit, so your nanny has to opt in. Get a written, signed authorization anyway. Federal Regulation E sets the floor, and Massachusetts adds an employee-consent rule on top.

What records do I need to keep for a Massachusetts household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Massachusetts follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Massachusetts Nanny Tax Guide

Massachusetts has a flat 5% income tax (with an additional 4% on income over $1 million) and a robust Paid Family and Medical Leave program that most employers must participate in.

Massachusetts household employer quick facts

Applies in Massachusetts

State income tax withholding
State unemployment
Paid family leave

Not in Massachusetts

Disability insurance

Minimum Wage

$15.00/hour

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SUTA Rate Range

1.118% - 17.086%

New employers: 2.42% on the first $15,000 (2026). Massachusetts Department of Unemployment Assistance

Key things to know

Flat state income tax of 5% (plus 4% millionaire surtax)
Paid Family and Medical Leave program
State minimum wage is $15.00/hour
High potential SUI rates

Massachusetts Employer Requirements

State Income Tax

Massachusetts uses a flat 5% income tax rate. An additional 4% surtax applies to income over $1 million (unlikely for household employees). Personal exemption is $4,400.

Paid Family and Medical Leave

PFML contributions are 0.46% of wages for employees (small employers under 25 are exempt from employer share). Benefits provide up to 26 weeks of combined leave.

State Unemployment Insurance

Employers pay SUI tax on the first $15,000 of wages. The 2026 new-employer rate is 2.42%. Once you've been registered for 3 years, your rate is based on experience, with 2026 rates ranging from 1.118% to 17.086%, including the COVID-19 Recovery Assessment.

Massachusetts household employer questions

What will it cost?

Wondering what you'll actually owe as a Massachusetts employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Massachusetts tax agency, IRS Publication 926

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Massachusetts Nanny Tax Guide

Massachusetts household employer quick facts

Massachusetts Employer Requirements

State Income Tax

Paid Family and Medical Leave

State Unemployment Insurance

Massachusetts household employer questions

What will it cost?

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