Massachusetts Employer Medical Assistance Contribution (EMAC)
In this article
Background
In the Commonwealth of Massachusetts, employers who have been in business for at least three years and have an average of at least six employees per quarter are subject to paying Employer Medical Assistance Contributions (EMAC), previously known as Unemployment Health Insurance (UHI). These contributions subsidize health care to low-income residents. Each employer is required to pay this contribution on the first $15,000 of each employee’s wages during the calendar year. There are also reporting requirements for this contribution. If you are a Full Service Payroll customer, this tax will be deposited and filed for you. For further details about EMAC, see the Massachusetts Labor and Workforce Development Website.
EMAC Rates
According to the Massachusetts Labor Website, the contribution rate depends on the number of years the employer has been in business:
| Year 1, 2, and 3 | New employers that become subject to EMAC or UHI previously will be exempt for the first 3 years |
|---|---|
| Year 4 | Employers in their 4th year of being subject to EMAC previously will an pay an EMAC rate of 0.12% (0.0012) |
| Year 5 | Employers in their 5th year of being subject to EMAC previously will pay an EMAC rate of 0.24% (0.0024) |
| Year 6 and more | Employers in their 6th year or more of being subject to UHI previously will pay an EMAC rate of 0.34% (0.0034) |
Similar to unemployment tax rates, it is your responsibility to keep these tax rates updated in the software.
How to Enter Your EMAC Rate in Payroll
- Go to Settings > Payroll Settings > State Unemployment Rates,
- Find the “Massachusetts Employer Medical Assistance Contributions”
- Click “Edit.”
- Enter in the assigned rate based on the year of the company being subject to EMAC
- Year 4: Employers in their third year of being subject to UHI previously will pay an EMAC rate of 0.12%.
- Year 5: Employers in their fourth year of being subject to UHI previously will pay an EMAC rate of 0.24%
- Year 6 and more: Employers in their fifth year or more of being subject to UHI previously will pay an EMAC rate of 0.34%.
- Click “Save.”
How to Make Your Company Exempt from EMAC
New employers are exempt from paying the UHI/EMAC tax for the first three years. If your business is exempt from this contribution indicate this in the software.
- Go to Settings > Payroll Settings > Tax Exemptions by State
- Select “Exempt” under “EMAC.”
- Enter the Effective Date.
- Click “Save.”
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