A planning model, not a tax return
“Effective tax wedge” here means selected non-wage employer costs divided by gross payroll. It is not a comprehensive tax measure or an OECD tax-wedge calculation. All employees are modeled as Massachusetts-covered, employed for a full year, and paid the entered average wage. Unequal wages, turnover and exemptions can change the result.
The scenario assumes the entered headcount also equals the applicable prior-year covered-workforce count. PFML contribution status uses the previous calendar year’s workforce, with DOR determining the count after the first registered year; a new hire does not necessarily change the employer share immediately. See the official workforce-count guidance.
Sector hour assumptions are editorial planning inputs, not survey findings. Override them with recorded hours. Energy includes only the surcharge you enter, not the full electricity bill; avoid counting the same charge twice.
Excluded: federal payroll taxes, FUTA, corporate and personal income taxes, sales and property taxes, workers’ compensation, EMAC, workforce-training and other UI assessments, PFML employee withholdings, benefit-payment employment taxes, private-plan differences, and ordinary utility supply and delivery charges. This model does not estimate a complete payroll deposit.
Rate references: DUA employer contribution rates; DUA employer guide (wage base); DFML contribution rates and wage cap. Rate year: 2026. Sources checked October 28, 2026. The PFML contribution structure changes in 2027; this tool models 2026 only.