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Depositing and Reporting Withheld Taxes: Massachusetts

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor


  • Massachusetts employers must follow different schedules for filing returns and paying over withheld taxes depending on the total amount of tax expected to be withheld from employees in a year. Interest and penalties are imposed on employers that fail to file withholding tax returns on or before the due date. See Deposit and Filing Due Dates.
  • Certain employers in Massachusetts are required to file returns and make payments by electronic funds transfer (EFT) for the next calendar year, depending on their combined annual liability for withholding, sales/use and excise tax. Penalties are imposed for noncompliance. See Electronic Deposit Requirements.
  • If an employer files paper Forms W-2, the employer must also file an annual reconciliation. See Annual Reconciliation Forms and Filing Deadlines.
  • Employers that file 50 or more Forms W-2, Wage and Tax Statement, in a calendar year are required to file them in machine-readable form. Employers that file fewer than 50 Forms W-2 have the option of filing them on paper or in machine-readable form. See Electronic and Magnetic Media Form W-2 Reporting Requirements.