Some Massachusetts Employers Get a Reprieve

Massachusetts is working to get all employers, including nanny employers, to report (and pay) withholding taxes, wages paid in a quarter, and unemployment taxes online - replacing a paper process that had employers mailing 3 paper forms to 3 different addresses every quarter with one simple online process. Sounds good - right?

Well - maybe! The system went online first quarter 2009 and was MANDATORY. It worked reasonably well for employers with BOTH withholding tax and unemployment taxes. It worked NOT AT ALL for household employers who were reporting unemployment taxes only. It seems they forgot in development that there were some Massachusetts employers who were not obligated to deduct income taxes - household employers. Many clients with simply a weekly housekeeper found themselves with no way to pay unemployment taxes. The solution was the state granted them a waiver for paper forms until the new system, launched December 7, went online.

There have been so many problems with the payment portal opened on December 7 that Massachusetts has extended the employer's deadline for payment of unemployment (NOT withholding) taxes until February 16 so they can work out the "kinks."

This is not a concern for premium clients - we handle all your tax reporting and will work diligently to insure the taxes and wage reports are filed timely. Our NaniTax (DIY) clients are referred to the online employer's user guide for help or to phone 617.626.5075 to speak to a representative. The paperwork provided in your year end folder provided all account numbers and amounts to be report, plus calculated amounts due, to facilitate your compliance.