State and federal tax intercept on delinquent employer accounts

MGL Chapter 151A §15(f) and MGL Chapter 7A, §§ 3, 8, 15, 18, & 19 authorize the Commonwealth of Massachusetts to recover delinquent tax contributions through state and federal intercepts.

The tax intercept process

Federal and state laws require state agencies to recover delinquent tax contributions by intercepting the debtors’ federal income tax refunds as well as intercept of state income tax refunds, payments from state contracts, lottery winnings and any other payments due to an employer. When an employer’s balance becomes final and eligible for intercept, a Notice of Intent to Intercept will be mailed to delinquent employers at least 60 days prior to referral for intercept. We recommend that you log in to Unemployment Services for Employers to update your address information and mailing preference. 

How can I avoid a Federal and/or State Tax Intercept?

You can avoid the risk of an intercept by filing accurately and paying the total balance due on time each quarter. If you cannot pay your balance in full you may enter into a payment agreement. However, having an active payment agreement doesn’t exclude you from intercept.

How do I make a payment?

• Log in to Unemployment Services for Employers.
• On the Account panel, select Make a payment
• Follow the system prompts to make a payment

How do I report employment?

When reporting UI covered employment for each of the three months in the quarter, you should report yes  or 1 for any  employee who worked for and received pay for UI wages during any part of the week of the 12^th for each month. Employers who only report DOR income tax withholding should not enter yes in the UI liable employment field and should report zero in the UI Gross Wages field.

Important information regarding maintaining your account

• If you are no longer in business, it is critical that you suspend your Unemployment Services for Employers account.  Failure to do so will result in non-filer penalties and assessments. To suspend your account go to the Employer information panel and select Request to suspend employer account.
• If you choose to use a third-party administrator, please be sure to add them as your TPA and assign them the appropriate roles in your account so they can file and make payments on your behalf. (Do not just add them as an account user.)