FSC vs UHI

Do Not Confuse the Fair Share Contribution (FSC) with the Unemployment Health Insurance Contribution (UHI) in Effect Since 1990

A note of clarification:

DUA has been administering the Unemployment Health Insurance (“UHI”) Program since 1990, which requires a contribution from certain employers who have an average of at least 6 employees in a quarter.  The UHI contribution is based on one of three tax rates, depending upon the length of time an employer has been in business. The assigned UHI tax rate is applied to the first $14,000 in wages paid to each employee during the calendar year. The UHI contribution funds the Medical Security Trust Fund, and enables DUA to provide health coverage to qualified and income-eligible Unemployment Insurance (UI) claimants while they are unemployed and collecting UI benefits.  All employers in business for 2 years or more are required to file with DUA for the first quarter each year between April 1 and April 30 and to file quarterly for any quarter in which they average at least 6 employees.

Conversely, potential liability for the Fair Share Contribution FSC applies to employers who employ 11 or more full-time equivalent (FTE) employees in an applicable reporting period.  Those employers who do not make a " fair and reasonable contribution " to their employees' health insurance, as defined in  Division of Health Care Finance and Policy regulation (114.5 CMR 16.00), are required to pay a per-employee FSC.  Assessment of liability for payment of FSC is contingent upon self-reported data filed by the employer in a Primary and a Secondary test.  For more information about the specifics of FSC including filing periods, payment dates, regulations, filing instructions, terms and definitions, and frequently asked questions, be sure to view all of the FSC sections provided within this Website.