Hello for Massachusetts SUI taxable wages should section 125 Plan and 401K be include or excluded? I'm looking for Documentation. My client is including the cafe 125 plan and 401K in the Sui Taxable wage and I'm trying to confirm if that is correct.
My understanding is that only NJ does not follow the federal rules for Section 125 and only PA does not follow the rules for 401(k).
MA should follow the normal federal rules. Meaning SUI wages should be gross wages less section 125.
Massachusetts does not allow pretax deductions for SUI purposes.
Unfortunately, all sates do not follow Federal rules for unemployment. So gross wages is the base used for Massachusetts.
Good to know.