Massachusetts Employers: Prepare for Supplemental Unemployment Tax Assessments
Massachusetts employers will soon see the impact of House Bill 3822, signed last year by Governor Charlie Baker. In an effort to offset the significant shift from commercial to publicly subsidized health care coverage, in 2018 and 2019, there will be an increase in the existing Employer Medical Assistance Contribution, as well as a new supplemental fee for employers whose non-disabled employees either receive coverage through the Massachusetts Division of Medical Assistance (MassHealth) or have their coverage subsidized by the Massachusetts Health Insurance Connector Authority (ConnectorCare).
Beginning in the first quarter of 2018, all employers will likely see an increase in their existing EMAC, assessed through the Department of Unemployment Assistance. The increase is intended to be temporary and applicable to wages paid in calendar year 2018.
Additionally, employers with more than five employees who are non-disabled and receive health care coverage through MassHealth or receive subsidized care through ConnectorCare for a period of at least 56 continuous days, will be assessed a supplemental fee of up to 5% of a covered employee’s unemployment insurance taxable wages (up to a cap of $750 per covered employee). The assessment will be based on wages on record with the DUA for … Keep reading