About the EMAC Supplement Hardship Waiver
On July 26, 2018, St. 2018 c. 154, § 68, was enacted into law, amending the EMAC Supplement statute, to require that the Director of the Department of Unemployment Assistance, in consultation with the Secretary of Administration and Finance develop a hardship waiver process for a employers experiencing financial hardship due to liability for the EMAC Supplement.
For a hardship to be approved an employer must fill out the application and include sufficient supporting documentation justifying need. After review, a determination without appeal rights will be issued to the employer. A hardship waiver is temporary and related to a specific quarter. Hardship waiver requests must be received during the first two weeks of the filing period. Employers who receive a waiver will be required to timely file and pay any additional contributions or the waiver will be reversed and the total amount (including interest) will be payable.
Financial hardship eligibility requires a showing by the business that:
(a) it has acted in good faith in all its relations with the Department, and certifies that it is current on state taxes and assessments, including, where applicable, the nursing facility user fee assessment; and
(b) provide evidence of one or more of the following:
(1) The business is unable to pay the EMAC Supplement because of financial hardship and failure to obtain a hardship waiver is likely to result in a substantial reduction in services, or termination of the employer’s business, or in substantial loss of employment;
(2) The business has paid an Employer Shared Responsibility Payment and been assessed an EMAC Supplement in the same calendar year; or
(3) The business experienced a turnover rate of at least 250% over the four quarters immediately preceding the application.
Which employers will be eligible for the Hardship Waiver?
Potential employers eligible for the Hardship Waiver include:
- Small Employers - Small Employer is defined as an employer with fewer than 50 employees
- Employers billed by the IRS for Employer Shared Responsibility (ESR)
- Seasonal Employers - Seasonal Employer is defined as an employer reporting 65% of their annual total gross wages in two consecutive quarters.
- Employers that serve the public interest by providing human services or long-term care services and that receive a significant share of revenues from governmental programs.
- Staffing companies
Required documentation that must be submitted with the Hardship Waiver application
For businesses applying because they are unable to pay the EMAC Supplement due to financial hardship and failure to obtain a hardship waiver is likely to result in substantial reduction in services, substantial loss of employment, or termination of the employer’s business; the following supporting documentation is required:
- A current Profit and Loss statement covering at least the most recent 12-month period
(January 2019 - December 2019).
- Copies of the six most recent bank statements for each business account and copies of the three most recent statements for each investment account.
- Copies of the most recent statement of outstanding notes receivable.
- Copies of the most recent statements from lenders on loans, mortgages (including second mortgages), monthly payments, loan payoffs, and balances.
- Copies of reimbursements from the state.
For those employers applying because they have paid ESR, the following documents below are required:
- Proof of payment to the IRS for ESR bill.
- Copy of ESR bill (IRS letter 226J) if applicable.
For employers applying because they have experienced a 250% turnover rate, the documents below are required:
- Turnover rate worksheet
- Weekly payroll record for the first week of 2019 Q1
- Weekly payroll record for the first week of 2019 Q2
- Weekly payroll record for the first week of 2019 Q3
- Weekly payroll record for the first week of 2019 Q4
- Weekly payroll record for the last week of 2019 Q4
Apply for the Q4 2019 EMAC Supplement Hardship Waiver
To apply for the EMAC Supplement Hardship Waiver, please complete the Q4 2019 EMAC Supplement Hardship Application in its entirety. If a section of the hardship waiver does not apply to you, please write ‘N/A’. For all applicable sections, please fill in completely and do not simply write ‘see attached’. Applications that include this language may impede your chances of being approved.
Once completed, please email the completed application, including any required supporting documentation, to EMACHardshipwaiver@mass.gov. The email subject line should include the EAN and company name.
- 1/1/2020- Q4 2019 wage filing begins and hardship waiver applications accepted
- 1/14/2020- Deadline for filing Q4 2019 hardship waiver applications. Applications must be submitted by 5 p.m.
- 1/31/2020- Q4 2019 payment due (Waiver determinations will issued before 1/31/2020)
- Applications must be fully completed, signed, and include all attachments. The completed application package, including all attachments, should be sent by email to EMAChardshipwaiver@mass.gov by January 14, 2020, 5:00 p.m. Unsigned or incomplete applications will not be accepted. If a section of the hardship waiver does not apply to you, please write ‘N/A’. For all applicable sections, please fill in completely and do not simply write ‘see attached’. Applications that include this language may impede your chances of being approved.
- The email subject line must include the EAN and company name.
- Each unique application must be submitted separately.
- An autoreply will be sent in response to a sender’s email to the EMAChardshipwaiver@mass.gov inbox.
- For employers selecting more than one hardship eligibility category, all applicable documentation for each selected category must be submitted with the completed application.
- Questions related to the hardship waiver should be directed to EMAC.Questions@DETMA.ORG.