Skip to content

Massachusetts UI and PPP Tax Relief a Signature Away

Massachusetts UI and PPP Tax Relief a Signature Away

March 31, 2021 Last Edit: June 5, 2025

Massachusetts UI and PPP Tax Relief a Signature Away

The Massachusetts House and Senate have now both unanimously voted to support legislation freezing unemployment insurance rates at schedule E and preventing PPP loans from being taxed by the state. The bill now awaits Governor Charlie Baker’s signature.

 

House Bill No. 90 bill will:

  • Freeze unemployment insurance taxes at schedule E for two years (2021 and 2022) preventing a 60% increase in UI taxes. It also authorizes the state to issue bonds to repay federal advances in UI funding so the state can take advantage of lower rates.
  • Prevent forgiven PPP loans from being taxed by the state of Massachusetts. Presently, businesses that file as pass-through entities for tax purposes would face state taxes on their forgiven loan amounts.
  • Mandate paid emergency leave for all workers. This bill ensures all workers in Massachusetts have access to upwards of 40 hours of paid emergency leave for COVID-related reasons. Employers with fewer than 500 workers would be eligible for federal tax credits to cover the cost of the paid leave. Businesses with more than 500 workers will have access to a state fund for reimbursement.

NFIB will continue to advocate for UI tax relief throughout the legislative session, as a freeze is only a temporary solution. It is strongly recommended that Massachusetts use some of the billions of dollars in federal funds to help replenish the UI Trust fund to ensure its solvency does not fall squarely on employers who were forced to close their doors by the state. We ask that you examine your UI rates closely when they become available, more specifically the “solvency assessment”, to monitor the rate of increase. Stay tuned for more information on UI taxes as this issue is not going away.

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

July 10, 2025
Historic Legislation Becomes Law and Stops Massive Tax Hike on…
The One Big Beautiful Bill Act is signed into law, permanently extending th…
Read More
July 10, 2025
LISTEN: NFIB LA Director Talks Insurance Reform, Tax Relief, an…
Leah Long legislation making the 20% Small Business Deduction permanent was…
Read More
July 7, 2025
New Op-Ed Highlights Challenge of Political Stalemate for PA Sm…
NFIB’s Greg Moreland wrote about why small businesses need tax reform act…
Read More
July 4, 2025
America’s Small Businesses Applaud President Trump, Congress…
“President Trump and Congress have the gratitude of 33 million American s…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility