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Massachusetts EMAC Supplement Hardship Waiver Regulations

11/01/18

Author: ADP Admin/Wednesday, October 31, 2018/Categories: Massachusetts

In response to the feedback taken during Listening Sessions, the Commonwealth of Massachusetts’ Department of Unemployment has released guidance outlining the scenarios in which they will consider hardship waiver requests for companies assessed a quarterly EMAC Tier II Supplement.

As you may recall, the EMAC Tier II Supplements went into effect the 1st quarter of 2018 and will be assessed through 2019. The assessments are triggered when an employee receives health care through MassHealth or subsidized health care via ConnectorCare, for a continuous period of at least 56 days.

An employer may submit a hardship waiver application to the MA Department of Unemployment Assistance, for review by the Director, if they fit in one the following categories:

(a) Small Employers – employers with fewer than 50 employees;
(b) Employers billed by the IRS for Employer Shared Responsibility under ACA;
(c) Seasonal Employers – an employer reporting 90% of their total annual UI gross wages in two consecutive quarters;
(d) Employers that serve the public interest in providing human services or long-term care services that receive a significant share of revenues from governmental programs.
(f) Staffing companies
(g) Other

The burden of proof to demonstrate eligibility for the hardship waiver is up to the employer. After review, the Director may grant a full or partial waiver of the assessment, if the employer successfully proves financial hardship.

Financial hardships are proven when: 1) the employer is unable to pay the EMAC Supplement; 2) the employer has acted in good faith in their relations with the Department; and 3) failure to obtain the waiver will result in termination of the employer’s business or a loss in employment.

Required supporting documentation includes:
  • Profit and Loss statement covering at least the most recent 12 month period.
  • Copies of the six most recent bank statements for each business account and copies of the three most recent statements for each investment and retirement accounts.
  • If an asset is used as collateral on a loan, include copies of the most recent statement from lender(s) on loans, monthly payments, loan payoffs, and balances.
  • 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.
  • Copy of ESR bill (IRS Letter 226J) and proof of payment, if applicable.

DUA begins accepting hardship waivers for the third quarter of 2018 (deadlines are posted on the MA unemployment website). A separate application is required for each quarter an employer receives the EMAC Supplement and wishes to attest hardship. Submitting a request does not extend the time for paying the EMAC Supplement. The Directors decision is final and there are no rights to appeal process.


Clients of ADP TotalSource should be submitting their hardship waiver, directly to the Massachusetts’s Department of Unemployment Assistance. It is important to notify the ADP TotalSource Tax Department at 877-310-0825, immediately after filing. This will ensure the EMAC supplement is not paid on your behalf before the hardship is reviewed by the Commonwealth of Massachusetts.

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Tags: Compliance Corner11/01/18state update

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