EMAC 2018- Massachusetts Employer Medical Assistance Contribution Tax


Employer medical assistants contribution
made simple by your friends at Brabo. Did you know Massachusetts passed a new
law increasing the amount you have to pay for the employer medical assistance?
Programs last year you paid up to $51 per employee and next year that total
can grow to $837. Why has this happened? The state has a budget
shortfall when it came to Mass House. Too many people have enrolled and the state
can’t afford it. So where do they turn? Employers of course. How do they justify
this? They have agreed to not go up as much as they plan to on unemployment
insurance. That’s right they claim to save you money because they won’t
increase the unemployment insurance as much as they said they would. Anyway
the law has passed and here is what happens. Tier 1 assessment. The $51 from last year grows to $77 per employee. This is calculated
at .51% of wages up to $15,000 per employee. This applies to all
employers with five or more employees and includes part-timers. Tier two: This
is a new assessment. If one of your employees enrolls in MassHealth or
gets a subsidy from the Massachusetts connector you get an assessment the
assessment is 5% of their pay up to $15,000 making the maximum penalty $750
per year. We didn’t write the law but we can help you understand it to learn more
about how this works. Call Brabo at 508 830 3800.

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