Employers must pay contributions on the first $15,000 of each employee's wages paid during the 2017 calendar year. The amount of contributions due (or liability) is derived by multiplying these wages by an assigned rate. The result is the amount that must be paid as an employer medical assistance contribution (EMAC).
When a quarterly contribution report is not filed to DUA via the UI Online as required, the amount of liability cannot be established and therefore will be estimated.
Employers are not liable for payment of employer medical assistance contributions in a quarter whenever the average employee count is fewer than six (because wages are exempt for that quarter).
Also, employers are exempt when they meet the definition of " newly subject ". That is, an employer is not liable for payment of employer medical assistance contributions, for up to three years after first becoming subject to the Unemployment Insurance Law.
Employer Medical Assistance Contribution (EMAC) Rates Effective January 1, 2017
1. Year 1, 2 and 3: As with EMAC, new employers that become subject to EMAC or UHI previously will be exempt for first three years.
2. Year 4: Employers in their fourth year of being subject to EMAC previously will pay an EMAC rate of .12% (.0012).
3. Year 5: Employers in their fifth year of being subject to EMAC previously will pay an EMAC rate of .24% (.0024).
4. Year 6 and more: Employers in their sixth year or more of being subject to UHI previously will pay an EMAC rate of .34% (.0034).
Employers that paid EMAC rate of 0.24% or 0.34% in 2016 will pay a rate of 0.34% for calendar year 2017–except for those meeting exempt or reduced rate criteria. (Employers operating within three years following the “Newly Subject” status as of MGL 151A, pay at rates of 0.12% and 0.24% respectively)
Employers, including those with "newly subject" status must file a quarterly Employment and Wage Detail Report and pay contributions in full by the quarter due date to avoid interest and penalties.
Employers can login to report wages, file payments, change address and even authorize access for an agent who does business on your behalf at www.mass.gov/dua any day of the week between 6:00 a.m. and 10:00 p.m.
Interest will accrue on unpaid principal at the rate of 12 percent per year from the quarter due date until fully paid. Employer records may be periodically subjected to an audit performed by a DUA representative. Dunning activities may include estimation of liability.
A late filer penalty may be assessed.
DUA may also intercept any payments due to an employer from the Commonwealth of Massachusetts.
EMAC receipts are credited to employers' accounts but are wholly and entirely independent of the unemployment insurance contribution collections and its trust fund.