State DUA Announces Changes to EMAC Supplement – EMAC Tax to Only Apply to Employees 18 & Older!

State to issue credits in 2nd Quarter for taxes paid on minors in 1st Quarter
 
The MA Department of Unemployment Assistance (DUA), the agency responsible for administering the EMAC Supplement tax, recently issued emergency regulations to change and clarify the tax treatment of minor-aged employees.  The quarterly EMAC Supplement took effect on January 1, and employers saw notices and bills at the end of this past first quarter.   
 
The EMAC Supplement is a new additional tax on employers with employees on public health assistance, specifically those employers with 6 or more employees whose non-disabled employees obtain health insurance either from Medicaid/MassHealth (excluding the premium assistance program) or subsidized coverage through the MA Health Connector.  The tax is 5% of annual wages for each non-disabled employee, up to the annual wage cap of $15,000, for a maximum of $750 per employee per year.
 
Under the rules in place during the first quarter, employers were assessed the EMAC Supplement for all non-disabled employees on MassHealth or ConnectorCare, including on employees who are minors.  The intent now and going forward, is to exclude minors from the assessment.  Employers will NOT be penalized and will NOT pay any tax assessment in the second quarter on any employees younger than 18 years of age.   
 
Further, it is our understanding from discussions with the DUA that employers will receive a credit at the end of the second quarter, for any taxes paid in the first quarter on minor-aged employees.  The credit will be issued automatically and will not require additional steps be taken by the employer.
 
The DUA guidance documents and regulations on the EMAC Supplement, including the EMAC Employee Information Form can be found at the links below.  All members are encouraged to review your EMAC findings closely.  The Employee Information Form can be used to appeal fines on those enrolled in your employer sponsored insurance, non-residents of MA, or if you believe the employee has income inconsistent with subsidized public health coverage eligibility.  These forms are due to the DUA by June 30th. 
 
Lastly, please continue to share your EMAC story and experience with your state legislators.  It is important for employers’ voices to be heard during this process.  Also, please share your story with us as well, or contact us with any questions.  Contact RAM Vice President Bill Rennie at (617) 523-1900 ext.110, or brennie@retailersma.org.
 
Learn about the Employer Medical Assistance Contribution (EMAC) Supplement
 
Additional Resources:
EMAC Supplement Regulations 
 
FAQ's Updates in Employer Health Care Contributions and Experience Rates
 
New TPA Roles for Employer Medical Assistance Contribution Supplement
 
Learn about the Employer Medical Assistance Contribution (EMAC) Supplement
 
EMAC Employee Information Form