WR-1 Form – Fill Out and Use This PDF

Massachusetts

Department of

Revenue

PO Box 7029

Boston, Massachusetts 02204

TO

BULK RATE

U.S. POSTAGE

PAID

COMMONWEALTH OF MASSACHUSETTS

1. General Information

The federal government requires each state to implement a Wage Reporting System, a program establishing a database of all em- ployers paying wages to employees. This database is used to en- sure the fairness of a host of programs, including unemployment insurance, veterans services, public welfare and child support en- forcement. The Massachusetts Department of Revenue has been designated as the state agency responsible for establishing and maintaining a wage reporting database for the Commonwealth of Massachusetts. The Commonwealth of Massachusetts Wage Re- porting System is authorized by Massachusetts General Laws, Chapter 62E.

This comprehensive Form WR-1 booklet contains Forms WR-1 and WR-2, instructions, Magnetic Media Transmitter Report, and record specifications for magnetic tape or cartridge filing. The in- structions are divided into four sections. Section one — General Information — answers questions you may have before you be- gin to fill out your return. Section two — Filing Requirements — answers specific filing concerns, such as who should be filing on magnetic media, when Form WR-1 must be filed, etc. Section three — Information to Be Reported — provides detailed infor- mation regarding the specific information that must be reported to DOR. This section is printed on the back of Form WR-1. The fourth section — Instructions for Filing on Magnetic Tape or Car- tridge — contains detailed instructions for employers who file on magnetic tape or cartridge. Beginning on the back of Form WR-2, this section provides an explanation of magnetic tape and car- tridge records, formats and specifications, and magnetic tape and cartridge mailing instructions. In addition, section four contains de- tailed record specifications for filing on magnetic tape or cartridge. These specifications are listed on the back of the Wage Reporting Magnetic Media Transmitter Report.

Who Is Required to File a Wage Report?

Under the wage reporting requirements, any person or business that employs one or more individuals and maintains a place of business or does business in Massachusetts is required to file an Employer’s Quarterly Report of Wages Paid, Form WR-1. Any person or business subject to Massachusetts withholding under Massachusetts General Laws, Chapter 62B, is also subject to wage reporting requirements.

NOTE: Employers who have their wage reporting returns, Form WR-1, filed by their corporate headquarters, payroll service, or tax service organization are not mailed a quarterly Form WR-1. In- stead, the quarterly Form WR-1 will be mailed to the address of the organization that is listed on the transmitter record. It is the re- sponsibility of the employers to ensure that their wage reporting obligation is met. To request a Form WR-1, employers should con- tact Electronic Data Services at (617) 887-5030.

Who Must Employers Include in Wage Reports?

Every employer must submit quarterly reports for each employee who either resides or is employed in Massachusetts, whether or not the employee’s wages are subject to withholding of tax or pay- ment of tax under Massachusetts income tax law.

What Is Included in Wages Paid?

Wages paid, as defined by Section 3401(a) of the Internal Rev- enue Code (IRC), generally means a) all cash remunerations for services performed by an employee before any allocations or de- ductions; and b) the cash value of all remunerations paid in a medium other than cash before any allocations or deductions, pro- vided that such non-cash remunerations are subject to federal personal income tax withholding, federal unemployment tax, Fed- eral Insurance Contributions Act deductions, or Railroad Retire- ment Act deductions. See Sections 3401(a)(1)-(21) of the IRC for types of remuneration not included in wages paid.

Employer’s Instructions for Form WR-1, Massachusetts Wage Reporting System

(CONTINUED)

2.Filing Requirements

How Do I File Wage Reports?

Before the end of each calendar quarter, employers or their pay- roll service representatives will receive an Employer’s Quarterly Report of Wages Paid, Form WR-1. Employers who report 250 or more employees are required to file on magnetic media. Employers with fewer than 250 employees have the choice of two reporting methods; filing the original copy of Form WR-1, or filing on mag- netic media. If you are filing Form WR-1 and need more space, you may report the additional employees on the Continuation Sheet, Form WR-2, included in this booklet. Additional forms can be obtained from any DOR Customer Service location listed at the back of this booklet. You may use your own listing sheets in place of the Form WR-2 as long as each sheet contains the employer’s name and federal identification number as it appears on Form WR-1. Note: This is not an option for employer’s who receive a preprinted Form WR-1. In addition, each employee must be listed in the same format as on the Form WR-1, with individual totals shown in the applicable boxes at the bottom of each sheet.

DOR accepts the magnetic media (tape and cartridge) standardized Interstate Conference of Employment Security Agencies (ICESA) format for those companies that file wage reporting information with multiple states. If your organization is interested in participat- ing, contact Electronic Data Services at (617) 887-5030.

Should I Be Filing on Magnetic Media?

NOTE: Employers who report 250 or more employees in a calendar quarter are required to report wage information on magnetic tape, cartridge, or diskette. Magnetic media filing en- sures that information about each business and its employees is recorded as accurately as possible. Filing in this way is also more cost-effective than processing information on paper for both em- ployers and the Commonwealth. Although companies reporting fewer than 250 employees are not required to file on magnetic media, many employers will find this reporting method beneficial.

Instructions and specifications for submitting information on mag- netic tape or cartridge files are included in this booklet. Call DOR’s Electronic Data Services at (617) 887-5030 for diskette filing in- structions. Magnetic tape or cartridge filers do not need to complete a Form WR-1, but must file a Magnetic Media Transmitter Report along with each tape or cartridge. (See the instructions for filing on magnetic tape or cartridge included in this booklet.)

When Do I File?

Form WR-1 is due no later than the last day of the month following the end of the quarter; provided, however, that if the last day day falls on a Saturday, Sunday or legal holiday such reports shall be submitted no later than the next succeeding business day.

Quarterly wage reports are due on the following dates:

Quarter Ending	Due Date
March 31	April 30
June 30	July 31
September 30	October 31
December 31	January 31

What If I Close My Business?

If the business is closed or the employer permanently ceases to pay wages, he/she must file a final wage report by the last day of the month following the end of the month in which the business or pay- ment of wages ceased.

What Are the Penalties for Failure to File?

Any employer who, without reasonable cause, fails to comply with the wage reporting requirements and who, after notification by certified mail, still fails to comply for more than 15 business days without reasonable cause, is liable for the following penalties:

1.First failure to comply: up to $25 per employee.

2.Second failure to comply: up to $50 per employee.

3.Third and subsequent failures to comply: up to $100 per employee.

3. Information to Be Reported

What Information About the Employer Must Be Reported? The employer’s name, address and federal identification number must be shown on all forms and correspondence sent to DOR. Your federal identification number is generally the nine-digit federal identification number also used for Massachusetts income tax with- holding purposes. The total number of employees and the total wages paid during the quarter must be shown in the applicable boxes to the right of the name and address area on Form WR-1.

What Information About the Employee Must Be Reported? You must report the wages for each employee who worked for you and was paid wages during any part of the calendar quarter. If there were interruptions in the employment of any employee during the quarter, the different periods of employment must be grouped to- gether and one entry made for each employee for the quarter.

The employee’s Social Security number must be entered in the first column exactly as shown on his/her Social Security card. Re- ports with blank or invalid Social Security numbers are not acceptable. Any report submitted without a valid Social Secu- rity number will be returned to the employer for correction. A returned report may result in an assessment of penalties.

The employee’s name (last name first, first name and middle initial) must be entered in the second column.

The wages paid in each quarter must be reported for each em- ployee residing in Massachusetts regardless of where he/she is employed. If the employee resides outside of Massachusetts, only his/her wages earned in Massachusetts are required to be re- ported. Wages are reportable even if they are not subject to Mass- achusetts withholding or the payment of Massachusetts income tax.

What If I Make a Mistake on the Report?

If a previously filed Form WR-1 needs corrections, you must submit a new Form WR-1 and check “amended return.” Report all infor- mation for each employee where an adjustment is required. Clearly state the quarter-end date and year-end date of the amended re- turn. A separate report must be filed for each quarter. Adjustments should not be made in the reports for subsequent quarters.

Which Records Must Be Kept?

Every employer required to submit wage reports under the Wage Reporting System must keep all pertinent records and information available for inspection and examination at any reasonable time by the Commissioner or his authorized representative. Such rec- ords should be kept for three years after the date the return was filed or the date it was due, whichever is later.

Diskette Filing Option

Employers who want to file Form WR-1 on diskette should contact Electronic Data Services for the required diskette specifications and record layouts at 617-887-5030. For magnetic tape and car- tridge filing instructions, see the back of Form WR-2.