Contributions
Employers must pay contributions on the first $15,000 of each employee's 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 an employer medical assistance contribution (EMAC).
When a quarterly contribution report is not filed to the Department of Unemployment Assistance (DUA) through UI Online as required, the amount of liability cannot be established and therefore will be estimated.
Exemptions
Employers are not liable for payment of EMAC 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 EMAC for up to 3 years after first becoming subject to the unemployment insurance law.
EMAC rates effective January 1, 2024
| Year 1, 2, and 3: | New employers that become subject to EMAC or UHI previously will be exempt for the first 3 years |
|---|---|
| Year 4: | Employers in their 4th year of being subject to EMAC previously will an pay an EMAC rate of 0.12% (0.0012) |
| Year 5: | Employers in their 5th year of being subject to EMAC previously will pay an EMAC rate of 0.24% (0.0024) |
| Year 6 and more: | Employers in their 6th year or more of being subject to UHI previously will pay an EMAC rate of 0.34% (0.0034) |