Are you staying on high of your state-specific employer obligations? As a result of every state has totally different legal guidelines, you’ll have extra tax obligations than an employer in one other state. Should you’re an employer in Massachusetts, you could be required to pay the employer medical help contribution (EMAC) tax.
What’s the EMAC tax?
The employer medical help contribution tax is an employer-only tax Massachusetts employers with six or extra workers pay. EMAC is a proportion of every worker’s wages. Massachusetts employers should file and report their quarterly EMAC tax legal responsibility to the Division of Unemployment Help (DUA).
As a Massachusetts employer, you need to pay EMAC tax along with your state unemployment insurance coverage (UI) tax legal responsibility and Workforce Coaching Fund Program contributions. EMAC tax contributions fund medical health insurance applications in Massachusetts, not unemployment or workforce coaching applications.
Even in the event you supply employer-sponsored medical health insurance to your workers, you need to pay the employer medical help contribution tax when you have six or extra workers.
Whenever you submit your employment and wage element report to the DUA, they’ll decide in the event you should pay EMAC tax. In case you are required to pay the tax, the DUA will ship you a discover together with your fee.
You don’t want to pay EMAC tax throughout 1 / 4 the place your common worker rely is lower than six. And, employers are exempt from paying EMAC tax for as much as three years after changing into topic to Massachusetts’ unemployment insurance coverage regulation.
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EMAC Contribution Charges
The contribution fee is a contribution proportion employers should pay on the primary $15,000 of every worker’s wages. After an worker earns $15,000, don’t contribute EMAC tax on their wages.
Check out the EMAC charges, primarily based on what number of years you may have been topic to the tax:
- First three years. New employers that turn out to be topic to EMAC are exempt for the primary three years.
- Yr 4. Of their fourth yr topic to EMAC, employers’ EMAC fee is 0.12%.
- Yr 5. Of their fifth yr topic to EMAC, employers’ EMAC fee is 0.24%
- Six or extra years. Of their sixth yr topic to EMAC, employers have an EMAC fee of 0.34%. This fee will proceed for all years after the sixth yr.
pay EMAC taxes
After submitting your employment and wage element report, the DUA tells you which of them taxes you might be chargeable for. Then, the DUA calculates how a lot you owe for EMAC tax, state unemployment insurance coverage, and workforce coaching.
Pay EMAC taxes via your unemployment insurance coverage on-line account.
You can also make funds to the DUA by way of paper test, ACH debit, or ACH credit score.
Submitting and fee due dates
File a wage element report with the Division of Unemployment Help and remit your legal responsibility.
You could file your wage element report and pay EMAC tax, state unemployment tax, and workforce coaching contributions by the quarterly due dates:
- Quarter 1: April 30
- Quarter 2: July 31
- Quarter 3: October 31
- Quarter 4: January 31
The DUA costs late payers curiosity on unpaid liabilities at an annual fee of 12%.
For extra details about the Employer Medical Help Contribution (EMAC) please go to the Massachusetts’ authorities web site.
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This text is up to date from its unique publication date of September 26, 2018.
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