December 12, 1984


Your inquiry on wage withholding requirements in Massachusetts and information concerning reporting of wage and tax information on magnetic tape. Massachusetts requires that each tape contain only one employer identification number. Multiple corporations with different identification numbers may not be reported on a single tape.

Regarding reciprocal agreements for resident tax withholding, Massachusetts Withholding Regulation 830 CMR 14.03 states:

If for any payroll period an employer is required to deduct and withhold from the wages paid to a legal resident- of Massachusetts the income taxes of other states, the District of Columbia, any territory or dependency of the United States (excluding the United States itself) or the Dominion of Canada or provinces thereof levied upon such wages, such employer shall be required to deduct and withhold under ... [the applicable Massachusetts withholding provisions] for such payroll period the amount determined under the applicable... [method], less the amount required to be deducted and withheld on account of such wages under the laws, rules or regulation of such other states, the District of Columbia, territory or dependency of the United States (excluding the United States itself) or the Dominion of Canada or provinces thereof.

Concerning exemption certificates, an employer should submit to the Department of Revenue those certificates in which the employer believes the employee has claimed excessive exemptions. In that case, if the commissioner finds that an employee has no reasonable basis for the number of exemptions, the Commissioner shall determine the number of exemptions to which the employee is entitled and will notify the employer. The employer shall thereafter use this determination for withholding purposes. (G.L. c. 62B, §4(f)).

Very truly yours,

Commissioner of Revenue

IAJ:JA:loc

LR 84-107