5.03:   Contribution Reports

(1)   No employer shall be permitted to make contributions, excepting on the basis of wages paid.

(2)   The employer's contributions accrue at the time the wages are actually or constructively paid by the employer.

(a)   Wages are constructively paid when they are credited to the account of or set apart for the employee so that they may be drawn upon by him at any time although not then actually reduced to possession.  To constitute payment in such a case the wages must be credited or set apart to the employee without any substantial limitation or restriction as to the time or manner of payment or condition upon which payment is to be made; must be made available to him so they may be drawn at any time; and their payment must be brought within his own disposition.

(b)   Wages, earned from an insolvent employer, due but unpaid shall be deemed to have been paid when earned for the purpose of establishing an individual's benefit rights.

(3)   Each employer who is determined to be liable for contributions, shall be liable on so much of his payroll as is subject to M.G.L. c. 151A, § 14 or 14C.  Liability for contributions is on wages paid by an employer in each calendar year to any individual performing service for him that is subject in Massachusetts.  This is without regard to:

(a)   Any earnings which he may have had in employment not subject under M.G.L. c. 151A.

(b)   Any employment which the individual may have had with another employer in the same calendar year whether or not subject in Massachusetts.

(4)   Contributions on wages paid by an employer shall be due and payable on the last day of the first month succeeding the quarter in which such wages were paid.

(a) Beginning with the quarter ending December 31, 2007, employers who file quarterly unemployment insurance contribution reports which report a total quarterly payroll of $50,000 or more shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

(b) Beginning with the December 31, 2007, employers who file quarterly unemployment health insurance reports which report a total quarterly payroll of $50,000 or more shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

(c) Any employer that becomes subject to the above provisions remains subject to such provisions even if the total quarterly payroll it reports drops below  the threshold specified in 430 CMR 5.03(4)(a) and (b).

(d) Beginning with the quarter ending December 31, 2008, all employers who file quarterly unemployment insurance contribution reports shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

(e) Beginning with the quarter ending December 31, 2008, all employers who file quarterly unemployment health insurance contribution reports shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

(f) The Commissioner may assess a penalty as set forth in M.G.L. c. 151A, 15 (a) or M.G.L. c. 151A,  14G(g), whichever is applicable, against employers  who are required to file quarterly unemployment insurance contribution reports and employers who are required to file quarterly unemployment health insurance contribution reports using electronic transmittal as prescribed by the Commissioner and who file but fail to use such electronic transmittal. 

(5)   The due date for the filing of reports and the payment of contributions for the quarters which have elapsed because of any retroactive effect of M.G.L. c. 151A on a subject determination of an employer shall be the last day of the first month succeeding the month in which the fact occurred making the employing unit subject.  The due date for reports for each subsequent quarter shall be the last day of the first month succeeding the date on which the quarter ended.

(6)   Whenever any individual or type of organization engaging the service of another believes the relationship of employer and employee does not exist, he or it shall file with the Commissioner a statement of relevant facts for determination.  The individual performing the service shall be deemed an employee until and unless the Commissioner determines otherwise.

(7)   If a part of the service performed by an individual in the employ of an employing unit during a pay period constitutes employment, that part shall be deemed to be in included services notwithstanding that the remainder does not constitute employment.  If part of the service is in employment and part is not in employment as defined but such parts cannot be separated, the whole of such service shall be deemed to be in employment.

(8)   While an employer is subject to the law, and until his liability for filing contribution reports has been suspended by the Department, such reports shall be submitted by such employer, even though no wages were paid, for each quarter during which he is subject to the law.

(9)   The prescribed employer quarterly contribution form will be regularly furnished each employer by the Department without application therefore insofar as possible. Employers not supplied with the proper form shall make application therefore to the Department in ample time to have their reports prepared, verified, and filed with the Department on or before the due date.

(10)   Any employing unit which would otherwise be subject to M.G.L. c. 151A because of the provisions of 430 CMR 5.02(2)(b) shall be exempt from M.G.L. c. 151A until its payroll for services performed in Massachusetts is in excess of $200.00 in a quarter.

(11)   For the purposes of M.G.L. c. 151A the term "agricultural labor" as used in section 6(a), except as otherwise provided in M.G.L. c. 151A, §§ 4A(d) and (e) shall have the meaning assigned to such term by subsection (g) of section 3121 of the Internal Revenue Code of 1954, and any amendments thereto.

(12)(a) Each employer shall insure that any third party which makes a payment included in the term "wages" solely by reason of M.G.L. c. 151A, § 1(s)(A)(1)(i) notifies such employer for whom the payee performed services, within 15 days of payment, and provide the following information to said employer:

1. The name and social security account number of the payee.

2. The amount of gross wages paid the payee pursuant to M.G.L. c. 151A, § 1(s)(A)(1)(i).

(b) The wages described above shall be deemed paid when the employer receives the notice or otherwise obtains knowledge of the payment.

(c) The employer shall pay contributions on said wages as required by M.G.L. c. 151A.

(13) Use of Payroll Processing Services

(a) An employer may use a payroll processing service to file quarterly unemployment insurance contribution reports and quarterly unemployment health insurance reports with the Commissioner. In such situations, the employer and the payroll processing service shall be subject to the following provisions: 

1. All payroll processing services who file quarterly unemployment insurance contribution reports on behalf of five hundred employers or more for at least one quarter during a calendar year shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

2.  All payroll processing services who file quarterly unemployment health insurance contribution reports on behalf of five hundred employers or more for at least one quarter during a calendar year shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

3. Beginning with the quarter ending December 31, 2007, all payroll processing services who file quarterly unemployment insurance contribution reports on behalf of any employers for any quarter during a calendar year shall file such reports using a form and means of electronic transmittal prescribed by the Commissioner.

4.  Beginning with the quarter ending December 31, 2007, all payroll processing services who file quarterly unemployment health insurance contribution reports on behalf of any employers during a calendar year shall file such reports using a form and a means of electronic transmittal prescribed by the Commissioner.

(b) All payroll processing services subject to the above provisions shall remit payment covering the total liability of all employers for whom such reports are submitted either in the form of a single check enclosed with the reports or through a single electronic funds transfer in a form  prescribed by the Commissioner.

(c) Any payroll processing service that make payment through electronic funds transfer shall register with the Division in accordance with the procedures prescribed by the Commissioner and by the date as determined by the Commissioner. A payroll processing service need register only one time; provided, that any changes in the information listed on the registration form must be reported immediately to the Commissioner.

(d) To be timely paid, a payment made through electronic funds transfer must be credited to the Division's designated bank account by the statutory payment due date for each quarter. If the statutory date for making such payment falls on a Saturday, Sunday or legal holiday, payment may be timely made on the next succeeding business day.

(e) A payroll processing service that becomes subject to the above  provisions remains subject to such provisions even if the number of employers for which it is reporting drops below the threshold number specified in 430 CMR 5.03(13)(a) 1 and 2.

(f) Failure of a payroll processing service to comply with the above requirements may result in payroll processing service losing permission to file reports on behalf of employers.