Employers must pay contributions on the first $14,000 of each employees wages paid during the 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 a health insurance contribution.
When a quarterly contribution report is not filed to DUA via the QUEST System as required, the amount of liability cannot be established and therefore will be estimated.
Employers are not liable for payment of health insurance 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 health insurance contributions, for up to two years after first becoming subject to the Unemployment Insurance Law.
Reduced Liability
In addition, in the two years following expiration of the " newly subject " status, employer liability is reduced through two lower contribution rates for the two calendar years following the" newly subject " status. The liability exemptions and reductions are intended to ease burdens on newly formed businesses and organizations.
Health Insurance Contribution Rates
The health insurance contribution rate is a flat rate of 0.48 percent for calendar year 2013 for all subject employers. If you're filing UHI for previous years, please use the flat rate of .48 percent for calendar year 2012, 0.36 percent for calendar year 2011 and 0.24 percent for calendar year 2010.
Reporting/Payment Requirements
All subject employers must file an Employment and Wage Detail Report on the QUEST System each calendar quarter except in the following circumstance.
- Newly Subject
Employers with " newly subject " status are not required to file a quarterly report until that status expires.
Employers must file a quarterly Employment and Wage Detail Report and pay contributions in full by the quarter due date to avoid interest and penalties.
Login to QUEST System
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/uima. Monday to Friday: 7:00am - 7:00pm. Saturday: 7:00am - 3:00pm.
Enforcement
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.
Funds Differentiation
Health insurance contributions receipts are deposited in the Medical Security Trust Fund. They are credited to employers' accounts but are wholly and entirely independent of the unemployment insurance contribution collections and its trust fund.