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The Massachusetts Food Association is a non-profit trade association for the supermarket and grocery industry in Massachusetts.

Our membership includes retailers (from the large chain supermarkets to the corner store operator), food brokers, manufacturers and wholesalers.
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MA Employer Health Care Assessment effective January 1, 2018
Friday, March 02, 2018 -


AN ACT FURTHER REGULATING

EMPLOYER CONTRIBUTIONS TO HEALTH CARE

CHAPTER 63 OF THE ACTS OF 2017

(Presented as H3822) 

REQUIREMENTS & CONDITIONS:

1.       The assessment comes in two tiers (click on underlined titles below for more information) and is effective January 1, 2018 through December 31, 2019, after which the EMAC rate returns to .34% and the Tier 2 assessment is eliminated.

2.      The unemployment insurance rate is adjusted lower than scheduled 2018 – 2019.

I. ASSESSMENT:

TIER 1 – INCREASE IN EMAC CONTRIBUTION FROM .34% TO .51%

EMPLOYER RESPONSIBILITIES

·         Each employer subject to the unemployment insurance contribution is also subject to Employer Medical Assistance Contribution (EMAC) reporting requirements.  This includes those employers who are in the reimbursable system.

Contributions

·         Employers must continue to pay contributions on the first $15,000 of each employees wages paid during the calendar year.  The amount of contributions due (or liability) is derived by multiplying these wages by an assigned rate of .51 per cent, effective January 1, 2018.  The result is the amount that must be paid as an EMAC payment.

PAYMENT OF ASSESSMENT

·         Employers must file a quarterly Employment and Wage Detail Report and pay contributions in full by the quarter due date to avoid interest and penalties. 

TIER 2 – NEW ASSESSMENT OF 5% ON WAGES (UP TO A MAXIMUM OF $750) PER EMPLOYEE THAT RECEIVES HEALTH INSURANCE COVERAGE FROM THE STATE

EMPLOYER RESPONSIBILITIES

·         Each employer subject to the unemployment insurance contribution (except those who employ not more than 5 employees) shall pay a contribution for each employee who receives health insurance coverage through the division of medical assistance or subsidized insurance through the commonwealth health insurance connector authority. 

CONTRIBUTIONS

·         The contribution shall be computed by multiplying the wages the employer paid any such employee by 5%, up to a maximum of $750 per employee.  

DETERMINATION OF ASSESSMENT

·         The department of unemployment assistance, in consultation with the division of medical assistance and the commonwealth health insurance connector authority, shall promulgate regulations to implement this subsection, which shall specify the number of days that an individual shall be required to receive such subsidized health care coverage to cause the assessment.  The contribution shall be paid in a manner prescribed by the director of unemployment assistance.

PAYMENT OF ASSESSMENT

·         Terms and conditions of unemployment insurance that are applicable to the payment and collection of contributions or payments in lieu of contributions shall apply to the same extent to the payment of and the collection of the contribution under these requirements.

II. U/I RATE ADJUSTMENT:

For calendar year 2018 the experience rate of an employer shall be the rate which appears in the column designated “D” for U/I rates, and for calendar year 2019 the experience rate shall be the rate which appears in the column designated “E”.


Posted By : Megan Servello

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