{"id":153,"date":"2025-05-05T22:08:29","date_gmt":"2025-05-05T22:08:29","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/massachusetts-tax-and-labor-law-summary\/"},"modified":"2025-06-18T17:49:01","modified_gmt":"2025-06-18T17:49:01","slug":"massachusetts-nanny-taxes","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/massachusetts-nanny-taxes\/","title":{"rendered":"2025 Massachusetts household employment tax and labor law guide"},"content":{"rendered":"
Finding accurate Massachusetts nanny tax information can be time-consuming. We’re here to help with this overview of everything domestic employers need to know about tax, payroll and labor laws. Check out the information below that HomePay is here to help with.*<\/p>
We know you’re busy so here’s a quick “to-do” list with links to extra details below.<\/p>
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned.<\/p> You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p> Household employers in Massachusetts are required to carry a workers’ compensation insurance<\/a> policy if their employee works 16 hours or more per week. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p> Household employers in Massachusetts are required to provide an employment contract<\/a> to their employee if he or she works 16 hours or more in a week. Additionally, families must provide a written evaluation of the employee’s work performance after 3 months of employment and annually thereafter if their employee requests it.<\/p> Families in Massachusetts are required to notify their employee of their rights by sharing these posters<\/a>.<\/p> The current minimum wage in Massachusetts is $15.00\/hour.<\/p> Massachusetts employers must reimburse employees if they are required to drive their own vehicle on the job. The current federal mileage reimbursement rate is 70 cents per mile and miles driven commuting are not eligible for reimbursement.<\/p> Household employers in Massachusetts are required to provide up to 40 hours of unpaid sick time to their employees per year.<\/p> Massachusetts household employees are allowed to take up to 8 weeks of unpaid maternity leave if they have worked full-time for the previous 3 months. Employers are required to hold the employee’s job if they decide to return to work.<\/p> Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p> Families with 2 or more employees have 3 options:<\/p> Visit our health insurance page<\/a> for more information about these options. <\/p>Set up EIN & state tax account(s)<\/h3>
Workers’ compensation<\/strong><\/h3>
Employment contract <\/strong><\/h3>
Employment posters <\/strong><\/h3>
During employment <\/strong><\/h2>
File returns, remit taxes and manage correspondence<\/h3>
Minimum wage rate<\/h3>
Massachusetts overtime requirements<\/h3>
Mileage reimbursements<\/h3>
Unpaid sick time<\/h3>
Maternity leave<\/h3>
Optional benefits for your employee <\/strong><\/h2>
Health insurance<\/h3>
Ending employment <\/strong><\/h2>
Termination requirements<\/strong><\/h3>