Massachusetts paycheck calculator employers use for hourly paychecks
The Massachusetts paycheck calculator at the top of this page simplifies checking your computations and helps ensure your hourly employees receive the correct take-home pay. But how does processing payroll truly differ for various types of workers?
The Core Payroll Process
Ultimately, the action of running payroll is quite similar for any employee. It all starts with their gross wages (the total money earned over a pay period). From this amount, you must withhold federal, state, and local taxes, plus any additional deductions for items like health benefits, retirement plans, or garnishments.
The journey from gross wages to net wages (the employee’s take-home pay) doesn’t change much. The primary distinction between payroll for hourly and salaried employees lies in how those gross wages are first calculated.
Calculating Gross Wages
For Hourly Employees
For workers whose compensation is tied to the time they work, you determine their gross wages by multiplying the number of hours worked during the pay period by their hourly pay rate.
While typically straightforward, many states have overtime laws that can increase an employee’s pay rate if they work more than a certain number of hours per day (usually 8 hours) or per week (typically 40 hours). Be sure to account for these specifics when calculating paychecks for hourly workers.
For Salaried Employees
For employees who receive a fixed annual salary, gross pay is calculated by dividing their annual salary by the number of pay periods in a year.
The following table illustrates what the gross wages would be for different pay periods based on a $100,000 annual salary (assuming no other pre-tax deductions):
| Pay Schedule | Gross Wages (based on $100k salary) |
| Weekly (52 pay periods/year) | $1,923.08 |
| Bi-Weekly (26 pay periods/year) | $3,846.15 |
| Bi-Monthly (24 pay periods/year) | $4,166.67 |
| Monthly (12 pay periods/year) | $8,333.33 |
Who Should Be Paid Hourly and Who Should Be Salaried?
When hiring, employers have some discretion in choosing who is paid a salary and who is paid hourly. Generally, salaries are offered to employees whose hours are fixed or consistent, and those at higher compensation levels. Employees at lower compensation levels whose hours are more variable often receive an hourly paycheck.
However compensation is handled, a few rules must be observed—most notably the rules for exempt and non-exempt employees under the Fair Labor Standards Act (FLSA). In essence, the FLSA mandates that employees are entitled to overtime pay when they work more than 40 hours in a week, unless they are “exempt” and fit into one of these categories:
– They are an executive
– They offer skilled professional services
– They have administrative or management responsibilities
– They are highly compensated (earning more than $151,164 per year in 2025)
– They are a computer programmer or analyst
– They have an outside sales role
There are other small exceptions. For a closer look at the classification of exempt and non-exempt employees, or if you have further questions, you should consult an employment or tax professional.
From Gross Wages to a Paycheck
Once gross wages are determined, it’s time to calculate the actual payroll by withholding federal, state, and local payroll taxes and applying any other applicable employee deductions. This procedure works essentially the same for all employees, whether they are salaried or hourly. More information is available on how to calculate payroll taxes if you want to understand the specifics.
Additional Massachusetts Resources
Finished using the Massachusetts paycheck calculator many employers trust? Here are more resources you can use:
State Minimum Wage: $15.00 per hour in 2025.
Is Workers’ Comp Required? Yes, for most employers—learn more about Massachusetts workers’ compensation requirements.
New Hire Reporting Required? Yes.
2025 SUI Rate (State Unemployment Insurance):
– Taxable Wage Base: $15,000.
– Rates Range: 0.73% to 11.13%.
– Tax Rate for New Employees: 1.87%.
This article (and the mentioned paycheck calculator tool) is provided for informational purposes only and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for formal consultation and final payroll numbers.