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MA Withholding Tax E-Filing

Withholding Files Transmission Changes #

Overview #

This document outlines important changes to the transmission methods for withholding files using ProPay software, effective from the 4th Quarter of 2015. These changes are in response to updates made by the Massachusetts Department of Revenue (MADOR) as part of their GeniSys Project.

Key Changes #

  1. Transmission Mechanisms
    • Withholding XML files: Only allowed via SSH/SFTP
    • Withholding Text files: Only allowed via MassTax Connect
  2. File Extensions
    • Withholding Text files must have “.TXT” extension when uploaded through MassTax Connect
  3. File Size and Compression
    • MassTax Connect: 5MB limit, no compression allowed
    • Multiple files can be uploaded simultaneously
  4. Error Handling
    • Real-time validation for file syntax and arithmetic checks
    • Back-end validations posted to MassTax Connect’s notification system
  5. FEIN Changes
    • “Dummy” FEINs (960xxxxxx) no longer supported
    • Existing users should re-register with legitimate FEINs
  6. SSH/SFTP Access
    • Process for setting up SSH/SFTP access needs to be defined
    • MassTax Connect will not incorporate this functionality

Detailed Guidance #

File Transmission #

XML Files #

  • Must be sent via SSH/SFTP
  • Contact MADOR at 617-887-5052 for password and further information

Text Files #

  • Must be sent via MassTax Connect
  • File extension must be “.TXT”
  • 5MB size limit
  • No compression allowed

Error Handling #

  1. Real-time Validation
    • File syntax and arithmetic checks performed upon upload
    • For testing file integrity, attach a file to a Web Request and cancel after validation
  2. Back-end Validation
    • Results posted to MassTax Connect’s notification system next business day
  3. Duplicate File Checks
    • System checks for previously uploaded files during nightly processing
    • Users can “Withdraw” requests before nightly processing begins

Filing Frequency Types #

  1. Depository Frequency (M-941D)
    • Tax type code: 0166D
    • Due date: Last day of the month following quarter end
    • Payments: 7th, 15th, 22nd, and last day of month
  2. Quarterly Frequency (M-941Q)
    • Tax type code: 0166Q
    • Due date: Last day of the month following quarter end
  3. Monthly Frequency (M-942)
    • Tax type code: 0166M
    • Due date: 15th day of the following month (exceptions for March, June, September, December)
  4. Annual Frequency (M-941A)
    • Tax type code: 0166A
    • Due date: January 31 of the following year

File Layouts #

Massachusetts M941X (Withholding) & M945X (Pension) Text File Layout #

Header Record #

The Header Record contains information about the transmitter and the file contents. Here’s a breakdown of the fields:

LocationField NameLengthDescription
1-6File Identifier6Enter “M941X” for Withholding or “M945X” for Pension Withholding
7-12Total Return Count66-digit numeric, total number of Returns (detail records) in the file
13-21Transmitter FEIN9Federal Employer Identification Number of Transmitter
22-51Transmitter Name30Left Justify, fill with blanks
52-81Transmitter Address30Left Justify, fill with blanks
82-111Transmitter City30Left Justify, fill with blanks
112-113Transmitter State2Use Standard FIPS Postal Abbreviations
114-122Transmitter Zip Code5Enter Valid Zip Code
119-123Zip Code Extension5Enter Zip Extension, If N/A leave blank
124-280Reserved157Enter Blanks

Total Characters: 280

Detail Record #

The Detail Record contains specific information for each return. Here’s a breakdown of the fields:

LocationField NameLengthDescription
1Record Identifier1Enter “M” for Monthly, “Q” for Quarterly, “D” for Depository Quarterly, “A” for Annual
2-7Sequence Number66-digit numeric, starting with “000001” for the first return
8-15Tax Period End Date8MMDDYYYY
16-24Employer FEIN9Federal Employer Identification Number of Employer
25-26Filing Entity Code2Obsolete
27-56Business Name30Left Justify, fill with blanks
57Return Record1Enter “Y” if Return Information is present, otherwise Enter “N”
58-67Number Of Employees1010-digit numeric, Right Justify, zero filled
68-791. Amount Withheld1212-digit numeric, Right Justify, zero filled “DDDDDDDDDDCC”
80-914a. Previous Payments Made1212-digit numeric, Right Justify, zero filled “DDDDDDDDDDCC”
92-1042. Adjustment for Prior Amount Withheld13Obsolete. File an Amended return to adjust prior periods.
105-1161.Amount Withheld12Should equal field 68-79, 12-digit numeric, Right Justify, zero filled “DDDDDDDDDDCC”
117-129Amount Due13Calculation: 1.Amount Withheld – 4a.Previous Payments Made
130-1414b. Credit From Previous Quarter1212-digit numeric, Right Justify, zero filled “DDDDDDDDDDCC”
142-153Balance Due12Calculation: (1.Amount Withheld – 4a.Previous Payments Made) – 4b.Credit From Previous Quarter
154-165Overpayment1212-digit numeric, Right Justify, zero filled “DDDDDDDDDDCC”
166Credit or Refund1Enter “C” for Credit, or “R” for Refund (default)
167Amend1Enter “Y” if amending this return, otherwise Enter “N”
168Final Return1Enter “Y” if Final Return, otherwise enter “N”
169Payment Record1Enter “Y” if Payment Information is present, otherwise Enter “N”
170-178Routing Transit Number99-digit numeric, omit hyphens
179-208Bank Name30Left Justify, fill with blanks
209-226Bank Account Number22Enter 22-digit Numeric Bank Account Number – Left Justify, file with blanks
227-228Account Type2Enter 01 if Checking or 02 if Savings
229-240Payment Amount1212-digit numeric, Right Justify, zero filled “DDDDDDDDDDCC”
241-248Settlement Date8MMDDYYYY
249-262Account ID1414 character Massachusetts Department of Revenue assigned identifier
263-280Reserved22Fill with Blanks

Total Characters: 280

Troubleshooting #

  1. File Rejection
    • Ensure correct file format (XML or Text) is used for the appropriate transmission method
    • Check file extension (“.TXT” for Text files)
    • Verify file size is within limits (5MB for MassTax Connect)
  2. Login Issues
    • For SSH/SFTP access problems, contact MADOR at 617-887-5052
    • For MassTax Connect login issues, ensure you have re-registered with a legitimate FEIN
  3. Validation Errors
    • Review real-time validation feedback for syntax and arithmetic errors
    • Check MassTax Connect notifications for back-end validation results

Additional Resources #

For further assistance or questions, please refer to:

  • ProPay software help menu
  • Paysoft website
  • Massachusetts Department of Revenue: 617-887-5052

Feedback #

We value your input! If you have suggestions for improving this documentation or encounter any issues not addressed here, please contact our support team through the ProPay software help menu or our website.