The employer-employee relationship exists when the person for whom services are performed has the right to control and direct the details and manner in which the job is to be accomplished. However, if you expect to owe more than $400 in Massachusetts income tax on the income you receive from your business, you must make individual estimated income tax payments.Īn employee is anyone who performs services for another person or organization under the direction and control of that person or organization. Therefore, you wouldn't register for withholding solely to pay your own taxes. If you're the owner of a business/sole proprietorship, you're generally not considered an employee for withholding purposes even if you have no other employees. An employer may be an:Įmployers are responsible for collecting and sending employee withholding taxes to us. Tax-exempt organizations such as religious and government organizations also have to withhold income taxes from their employees. As an employer, you must withhold Massachusetts personal income taxes from all Massachusetts residents' wages for services performed either in or outside Massachusetts and from nonresidents' wages for services performed in Massachusetts.Īn employer is any person, corporation, or organization that someone performs a service for as an employee. Withholding refers to income tax withheld from wages by employers to pay employees' personal income taxes.

Irs payroll withholding tax tables 2020