Massachusetts categorizes businesses based on the amount of sales tax they collect: - Monthly Filing: For businesses collecting over $1,200 in sales tax monthly. These larger businesses require more frequent filings, necessitating robust accounting systems and ensuring timely compliance. - Quarterly Filing: For businesses collecting between $101 and $1,200 monthly. This is suitable for mid-sized businesses, balancing compliance requirements with manageable administrative efforts. - Annual Filing: For small businesses collecting $100 or less monthly. This reduced frequency simplifies compliance for small enterprises, minimizing administrative burdens and allowing them to focus more on core operations. The filing frequency affects administrative workload, resource allocation, and compliance management, with larger businesses needing more rigorous systems and smaller businesses benefiting from simpler processes.