Employer contributions to unemployment

Many employers in Massachusetts must contribute to unemployment insurance. Learn more about contribution requirements, rates, and deadlines.

Employers that need to pay unemployment insurance

Most private, for-profit businesses in Massachusetts need to pay into unemployment insurance. Employers need to contribute if they:

• Have one or more employees working on a permanent, temporary, or part-time basis at least one day a week for a minimum of 13 weeks during the calendar year (the weeks do not need to be consecutive)
• Pay $1,500 or more in wages in any quarter

Some employers are subject to different requirements and wage thresholds:

• Agricultural employers must contribute if they paid wages of $40,000 or more in any quarter or had 10 or more employees one day a week for at least 20 weeks a year
• Domestic employers must contribute if they paid $1,000 or more in cash wages to domestic workers in any quarter
• Out-of-state employers must contribute if they reach $200 in gross wages paid in Massachusetts in any quarter

Exempt employment

Some wages can’t be used for the purposes of unemployment contributions, including wages paid for:

• Children under the age of 18 working for their parents
• People working for their spouse
• People working for their children
• Work completed for some religious organizations
• Work-training experiences through non-profit or public institutions
• Commissions for real estate brokers or insurance agents

Under certain circumstances, wages paid to independent contractors are also exempt.

How much do employers need to pay?

The amount employers owe each quarter depends on wages paid to employees and the employer's current contribution rate.

As of 2025, contribution rates are: 

• New employers (registered less than 3 years): 2.13%
• New construction industry employers: 5.45%
• Established employers (registered 3 or more years) pay a rate calculated by DUA annually. This rate is based on a number of factors, including your current standing with DUA.

Voluntary contributions

If eligible, employers can make additional voluntary contributions to lower their experience rating and reduce their contribution amount for the upcoming year.

Deferrals

If eligible, employers can defer up to 34% of contributions owed in Quarters 1 and 2. 

View your rate notice

DUA sends annual rate notices by January 31 each year. Notices are available from the employer information panel in your Unemployment Services for Employers account.

Request a rate review

You can request a rate review before June 20 each year. To submit a request:

• Log in to Unemployment Services for Employers
• From the employer information panel, select view more employer details
• Select request a rate review

Due dates

If your business is required to pay unemployment insurance, you will need to file a quarterly employment and wage detail report and pay any contributions by the quarterly deadlines:

• Quarter 1 is due by 3 p.m. on April 30
• Quarter 2 is due by 3 p.m. on July 31
• Quarter 3 is due by 3 p.m. on October 31
• Quarter 4 is due by 3 p.m. on January 31

How to submit an employment and wage detail report  How to pay unemployment contributions 

Interest charges

Late payments are subject to a 12% interest rate until they are fully paid.

Tax intercept on employer accounts

Federal and state law allows state agencies to intercept tax refunds for unpaid unemployment debts.

If you get a Notice of Intent to Intercept, you still have time to make payments on your account. Log in to Unemployment Services for Employers to make any outstanding payments.