AN ACT FURTHER REGULATING
EMPLOYER CONTRIBUTIONS TO HEALTH CARE
63 OF THE ACTS OF 2017
(Presented as H3822)
REQUIREMENTS & CONDITIONS:
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.
unemployment insurance rate is adjusted lower than scheduled 2018 – 2019.
TIER 1 – INCREASE IN EMAC
CONTRIBUTION FROM .34% TO .51%
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
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
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.
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.
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
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