Payment of the Employer Medical Assistance Contribution (EMAC) is similar to paying unemployment insurance contributions. In general, employers are required to report to DUA subject wages, the number of employees, and to remit payment of contributions each calendar quarter. Changes in ownership or operation status must be reported immediately, and employers must keep records of data provided to DUA, including any supporting documentation from which data is derived.
Each employer subject to the unemployment insurance contribution is also subject to EMAC reporting requirements. This includes those employers who are in the reimbursable system.
Wages, Wage Base and Wage Exemption for Health Insurance
The definition of wages for Employer Medical Assistance contributions is the same as that for Unemployment Insurance contributions. The EMAC wage base is the first $14,000 of an employee's wages paid during the calendar year.
Whenever an average of fewer than six employees are employed during a quarter, wages paid in that quarter are exempt. That is, they are not to be considered as part of the wage base for the quarter (or calendar year), nor are employers liable for payment of EMACs. This does not change the definition of wages as forms of remuneration but only exempts those wages based solely upon the average number of employees in a quarter. Because wages are exempt, the average employee count precludes payment of Employer Medical Assistance contributions for any quarter in which fewer than six workers are employed. (Please see Liability Exemptions)