Employer Medical Assistance Contribution Rate in Massachusetts
The Employer Medical Assistance Contribution (EMAC), which replaced the Unemployment Health Insurance (UHI) tax in 2014, helps to fund subsidized healthcare for low-income individuals in MA.
Employer Medical Assistance Contribution (EMAC)
The Employer Medical Assistance Contribution (EMAC), which replaced the Unemployment Health Insurance (UHI) tax in 2014, helps to fund subsidized healthcare for low-income individuals in MA. Companies who have been around for 2 years or less, or have an quarterly average of fewer than six employees are exempt from EMAC.
EMAC Rates
Employer contributions to EMAC are determined by the company’s EMAC rate.
- New employers that become subject to EMAC or UHI previously will be exempt for the first 3 years.
- Employers who have been subject to EMAC (or UHI) for four years have a rate of 0 .18% ( 0 .0018).
- Employers who have been subject to EMAC (or UHI) for five years have a rate of 0 .36% ( 0 .0036).
- Employers who have been subject to EMAC (or UHI) for six years+ have a rate of 0 .51% ( 0 .0051).
EMAC Supplemental Contribution
Beginning January 1, 2018, employers with six or more Massachusetts employees in a given quarter may be liable for the Supplemental EMAC contribution if the employees are:
1) non-disabled and
2) have health insurance either from MassHealth (excluding premium assistance programs), or who have subsidized coverage through Massachusetts ConnectorCare, for a minimum of 8 weeks during the quarter.
Supplemental EMAC Contribution guidelines
- 5% of annual wages per affected employee
- up to annual wage cap of $15,000
- maximum of $750 per employee per year
- does not apply to employees who earn less than $500 for the quarter
- the supplemental EMAC contribution only applies to employees on state-subsidized coverage
