Massachusetts is what is referred to as a client-reporting state for unemployment insurance. Justworks needs this information to report unemployment taxes under customers' unemployment account numbers.
If you are beginning with Justworks, or recently hired your first Massachusetts employee, you must complete the following steps.
Step 1. Grant Justworks Third Party Access (TPA) for Unemployment:
- Head to UI Online. Log in.
- Click on Account Maintenance on the left.
- Click Third Party Administration Authorization.
- Click 'New' at the bottom and enter 103503 as the TPA ID.
- Give us Access to All Presented Options (no need to check the options ending in “View Only").
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Please enter the current date as the TPA Services Begin Date.
*If partially owned by another business/entity, please provide ownership information for the individuals who own that business/entity.
Step 2. Set up your PFML/HIRD Account & Grant Justworks PFML TPA
Note: The MA Paid Family Medical Leave program is funded through a combination of employer and employee contributions deducted from payroll. Justworks will automatically collect this tax on your behalf when you pay eligible employees. You must create a withholding account in order to grant the accesses, and then close the withholding account once the access is granted.
Please see this PFML help article for more information on PFML contributions. See below for setting up the account:
Register for your HIRD/Paid Family Medical Leave Account
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From the MassTaxConnect portal, click on 'Register a New Taxpayer'
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Click on Register a Business, then click Next
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Select ‘I am registering a business, organization, or other entity’
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Select 'Paid Family and Medical Leave' and 'Withholding Tax' accounts from the list of checkbox options
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Click Next, and follow the remaining instructions to register for employer withholding and Paid Family and Medical Leave (PFML)
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Verify registration information, then submit
Grant TPA for HIRD/Paid Family Medical Leave
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Go directly to the MassTaxConnect portal here and log in
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Select “Manage my Profile” in the upper right corner
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Then select “More…”
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Select “Assign Access Rights to a Third Party”
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The Third Party Public Directory list will display. Select/Search for Justworks Employment Group LLC.
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Once Justworks is selected, click the Next button to see a list of your tax accounts
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For Withholding Tax and for Paid Family and Medical Leave accounts, select the button in the Give Rights column, and select the “File and Pay” access type from the Access Rights column
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Click the Next button, review and then click the Submit button to confirm
Close your withholding account.
From the Summary page, scroll down to the “Withholding tax” section. Then, on the right-hand side select “Close tax account” and follow the prompts.
* For companies new to Massachusetts:
- Reason should be: created in error.
- Closure date should be same as registration date.
* For companies with a preexisting withholding account:
- Closure reason should be: Final Return Filed
- Closure date:
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If Justworks effective date is the first day of a quarter, use the day before: e.g., 01/01/21 effective date → 12/31/20 end date. Otherwise, use the quarter-end date following the effective date: e.g., 05/01/20 effective date → 06/30/20 end date.
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If account was not closed during on-boarding process and you are doing it later, you should use the day before your premier/effective date with Justworks.
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Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.