Payroll Taxes for Employees Outside of Massachusetts

Overview

For UMass employees working or living outside of Massachusetts—including remote and hybrid employees—your state payroll taxes are based on the rates and rules in your state of residence. State tax withholding includes the base rate in your state, unemployment insurance, and paid family and medical leave, among others. 

Please note that remote and hybrid employment arrangements take many forms, including:

  • Living in another state and primarily working in MA
  • Living in another state and working in MA 50% of the time
  • Living in MA and working part-time in two states
  • Living in a no-income-tax state and working part-time in MA
  • Living and working primarily in MA and part-time in another state

Changes to State Payroll Tax Withholding

As of June 2021, UMass is implementing a new process that will ensure state tax withholding in your paycheck and on your W-2 reflects your state of residence. UMass has worked with the Commonwealth of Massachusetts to incorporate state taxation rules for a number of states where our employees live or work. Our goal is to complete this process for all affected states by fall 2021. 

If you have questions about how these changes will impact tax withholding in your paycheck, please contact Payroll Shared Services. Our team can help you to understand the changes and direct you to resources in your state. The Commonwealth of Massachusetts also provides resources for determining residency status, multiple state withholding requirements, and a guide for non-residents who telecommute.

When filing your taxes, we highly encourage you to speak with a tax professional if you have questions about how or in which state to file. 

News & Updates

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Need Assistance?

Do you need assistance with a payroll related issue?
Contact the University Payroll Office by calling (774) 455-7579
or submitting a support request using the links below.

Create a Case    Email Support