Massachusetts Employer Guide
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with MA labor laws.
1- Domestic Workers - Attorney General’s Fair Labor Division
2 - Checklist for Employers to comply with the Domestic Workers’ Bill of Rights
WORKERS’ COMPENSATION (FOR ON THE JOB INJURIES): REQUIRED IF 16+ HOURS/WEEK: If your household employee works 16 hours per week or more, you need to carry workers' compensation insurance, which is an insurance system that protects employees if they get injured on the job or contract a work-related illness.
You can get insurance through any insurance agent or broker who handles business insurance or through a direct writer of insurance. For more information about workers' compensation in Massachusetts, call the Department of Industrial Accidents at (617) 727-4900 or (800) 323-3249, or visit their website.
I-9 form: https://www.uscis.gov/i-9
Have your employee fill this out at time of hiring. You do not submit this to anyone, just keep it filed in case of an audit.
W4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
Use the filing status and deductions/withholding from the employee’s W4 to complete the employee profile in the app (you can change withholdings during the year if employee requests this). You do not submit the W4 form to anyone, just file it away.
The Nest Payroll app will default to the highest withholding at “single” and no dependents if no changes are made.
16+ hours a week: REQUIRED TO HAVE A WRITTEN AGREEMENT
You can use this Model Domestic Worker Employment Agreement from the Office of the Attorney General or the
Massachusetts Coalition of Domestic Workers Written Agreement.
Your written agreement must be signed and dated by both you and your employee and retained for three years.
15 hours a week or less: It’s still beneficial to have a written agreement because it reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have a contract with your employee, you can use the ones above or download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Please take advantage of their excellent and free sample contracts and guide books.
You must give these notices to your employee when you hire:
This is required, and the MA Attorney General’s office has created a sample time sheet for your household employee and you to use. Feel free to use this time sheet, tailored to your situation.
For more sample documents from the AG's office, go to the AG's website.
Your employee might also like the free timesheet app from the U.S. Dept. of Labor.
Minimum Wage: It is required to always pay minimum wage or more. If you are a nanny share, and the hourly rate is under minimum wage after split with the other family, we suggest you divide the hours instead.
Overtime: Hours over 40/week must be paid at 1.5 the regular pay rate. Please enter any overtime hours into Nest Payroll when you create a paystub, and overtime will automatically be calculated.
Sick Leave: The Massachusetts Earned Sick Time Law states that employers with 10 or fewer employees must provide 1 hour of guaranteed unpaid sick leave for every 30 hours worked, not to exceed 40 hours per year. Employees can use this time if they are ill, injured, or need to attend to a medical condition for themselves, a spouse, a child, parent, or parent of a spouse. Employees can carryover up to 40 hours of unused paid sick leave to the next year.
Rest: If anyone works for you for 40 hours/week or longer, you must give them at least 24 consecutive hours off per calendar week, and at least 48 consecutive hours off during a calendar month.
Massachusetts New Hire Reports
Massachusetts Dept. of Revenue: Quarterly reporting/filing and tax payments for Withholding Tax Form M-941 and Paid Family and Medical Leave
Massachusetts Dept. of Unemployment Assistance: Quarterly reporting/filing and tax payments
Annual Reconciliation to Massachusetts Dept. of Revenue
IRS quarterly estimated tax payments (IRS schedule is: April/June/September/January)
W-2s for all your household employees
Schedule H, signature ready, that you include with your personal 1040 taxes in April
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.