What is a voluntarily contribution?

What is covered employment?

What are covered wages?


Question: What is a voluntarily contribution?

Answer: Eligible Massachusetts employers with an experience rated account can choose to pay voluntary UI contributions. This program allows the state's businesses to manage their unemployment insurance costs by paying additional contributions in order to increase their account reserve percentage and reduce their UI tax rate for the forthcoming calendar year.

Eligible employers will be provided with a checklist in which to choose an additional payment amount and a corresponding lower tax rate. Logon at mass.gov/uima

Employers who are delinquent in filing and paying their UI contributions, interest, surcharges or penalties are not eligible to make a voluntary contribution. If your company has any unpaid obligations to DUA, you may file any outstanding reports, pay the amount owed, and then choose to pay voluntary contributions. This must all be completed by a specific due date each year. Any outstanding debt must be paid separately and cannot be included with your voluntary contribution payment. Employers whose accounts are not experience rated (new employers) and employers who are at the lowest rate on the schedule are not eligible for the voluntary contribution program.

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Question: What is covered employment?

Answer: Covered employment is employment that is considered when determining whether an individual's wages are liable for contributions due as well as eligible for use, as part of an application for unemployment benefits. MGL 151A Section 2 http://www.mass.gov/legis/laws/mgl/151a-2.htm

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Question: What are covered wages?

Answer: Every form of remuneration of an employee subject to this chapter for employment by an employer, whether paid directly or indirectly, including salaries, commissions and bonuses, and reasonable cash value of board, rent, housing, lodging, payment in kind and all remuneration paid in any medium other than cash MGL 151A section 1 (s)(A)

http://www.mass.gov/legis/laws/mgl/151a-1.htm

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