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Massachusetts Employer Medical Assistance Contribution Tier II Supplement

01/04/18

Author: ADP Admin/Tuesday, January 2, 2018/Categories: Massachusetts

In August 2017, Governor Baker signed off on a $200 million health care assessment on Massachusetts employers, in an effort to control growth in Medicaid and state health care spending.  This is scheduled to be a temporary tax, taking effect the first quarter of 2018.  The assessment is two-fold: an increase to the Employer Medical Assistance Contribution (EMAC) unemployment rate from 0.34% to 0.51% and a “Tier II” assessment of 5%, on the same unemployment wage base of $15,000, for an employee who receives state subsidized health coverage.

 

To prepare for the change, the Department of Unemployment held five Listening Sessions, across the Commonwealth, to hear concerns from local businesses and business associations. ADP TotalSource Benefit Compliance and Government Relations were there, along with NAPEO, to offer considerations of administrative system and rules affecting employment-related reporting. 

 

Several business associations brought up points about how to handle when employees work for multiple employers and new hire waiting periods for insurance.  They asked for considerations on different exceptions to which employees this assessment would apply, as currently it includes part-time workers. 

 

The DUA will hold hearings in early January-late February—once final regulations are released–to speak to the inquiries submitted during the listening session and provide additional guidance. 

 

ADP TotalSource is committed to keeping you advised on all the latest compliance developments. 

 

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