EMAC Supplement Hardship Waiver

The Department of Unemployment Assistance (DUA) is considering promulgating regulations relating to the newly enacted hardship waiver of liability for the Employer Medical Assistance Contribution (EMAC) Supplement.

As proposed, hardship waivers will be available to the groups outlined below. For a hardship to be approved an employer must fill out the application and include sufficient supporting documentation justifying need. After review, a determination without appeal rights will be issued to the employer. A hardship waiver would be temporary and related to a specific quarter. Hardship waiver requests must be received during the first two weeks of the filing period (for Q3, applications would be due by Friday, October 12th). Employers who receive a waiver will be required to timely file and pay any additional contributions or the waiver will be reversed and the total amount (including interest) will be payable.

As proposed, an eligible recipient of the hardship waiver would meet the following standards: 

• Have a determination by the commissioner that there exists an inability on the part of the employer to make full payment of contribution with interest or penalty.
• The employer has acted in good faith in all his relations with the department.
• Failure to compromise may result in termination of the employer's business or in loss of employment.

Important dates:

• 10/1- Q3 wage filing begins and hardship waiver applications accepted
• 10/12- Deadline for filing Q3 hardship waiver applications
• 10/31- Q3 wage filing completed (Waiver determinations will issue before 10/31)

Potentially eligible employers:

• Small Employers - Small Employer is defined as an employer with fewer than 50 employees.
• Employers billed by the IRS for Employer Shared Responsibility
• Seasonal Employers - Seasonal Employer is defined as an employer reporting 90% of their annual total UI gross wages in two consecutive quarters.
• Employers that serve the public interest by providing human services or long-term care services and that receive a significant share of revenues from governmental programs.
• Staffing companies
• Other

Supporting documentation will include:

• 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 is asking for input on the proposed hardship waiver regulations and welcomes interested members of the public to attend listening sessions on the dates below. Photo identification is required of all persons entering the building.

When: Monday, September 17, 2018

10:00 a.m. to 12:00 a.m.

Where: Department of Unemployment Assistance

Charles F. Hurley Building

19 Staniford Street

Minihan Hall, 6^th floor

Boston, MA 02114

When: Tuesday, September 18, 2018

1:00 p.m. to 3:00 p.m.

Where: Department of Industrial Accidents

436 Dwight Street

Springfield, MA 01103

Comments may also be submitted to the following email address:

[email protected]

Proposed regulations and general information on EMAC Supplement can be found using the following link.

https://www.mass.gov/service-details/learn-about-the-employer-medical-assistance-contribution-emac-supplement