Massachusetts Business Taxes

Massachusetts business owners pay a variety of state taxes, including sales and use tax, payroll tax, and workers’ compensation insurance. The Department of Revenue offers a range of resources for small businesses, including its Small Business Tax Video series and MassTaxConnect, an online portal for filing and paying business taxes.

Businesses that sell physical products and certain types of services must register for sales and use tax with the Department of Revenue. Once registered, the business must collect and remit the tax to the state. This is usually done through an integrated point-of-sale system that determines the applicable rate based on the location of the store. Online marketplaces and hosted store solutions also offer sales tax collection services, often for a fee.

All C corporations must pay corporate excise tax based on a percentage of the corporation’s taxable net income. In addition, a self-employment tax is levied on all earnings of C corporation shareholders. Individuals who file a Schedule C or C-EZ tax return must also pay self-employment tax, which is administered by the Federal Insurance Contributions Act and covers Social Security and Medicare.

How to Pay Massachusetts Business Taxes?

MassTaxConnect is the Massachusetts Department of Revenue’s online system for filing and paying taxes, including business taxes. It offers a secure and convenient way to manage your business tax obligations in the Commonwealth.

Here’s how you can use MassTaxConnect to pay Massachusetts business taxes:

1. Register for an Account (if you haven’t already):

• Head over to the MassTaxConnect website: [Massachusetts Department of Revenue MassTaxConnect]
• You’ll need to register for an account if you’re a new user. The registration process will guide you through setting up your credentials.

2. File Your Business Tax Return:

• Once logged in, navigate to the section for filing business tax returns. MassTaxConnect offers a user-friendly interface to electronically file different types of business tax returns applicable in Massachusetts.

3. Schedule and Make Payment:

• After filing your return, MassTaxConnect will calculate any taxes owed. You can then schedule and make the payment electronically through the platform. It accepts various payment methods for your convenience.

Massachusetts Business Taxes Due Dates

Sales tax filing is a two-step process requiring businesses to submit their sales data and the collected tax dollars to the state. Filing and remitting sales taxes on time is vital to avoid late penalties. Many businesses outsource their sales tax compliance to an accountant or bookkeeper.

The due date for 2023 Massachusetts state income tax returns is April 18, a few days later than normal due to regional holidays, including Patriots’ Day. The deadline for filing sales and use tax returns by materialmen will remain April 15. To qualify for COVID-19 relief, taxpayers must have 80% of their liability paid by the due date. This can be done through payments, withholding, and credits.