How to Configure Massachusetts Employer Medical Assistant Contribution

Learn how to set up the Massachusetts Employer Medical Assistant Contribution (EMAC) tax.

Overview

As part of the Massachusetts Employer Medical Assistance Contribution (EMAC) program, you are required to pay contributions on the first $15,000 of each employee's wages paid during a calendar year.

The contribution amount due (liability) is then derived by multiplying these wages by an assigned rate. The result is the amount that must be paid as an EMAC.

Exemptions

There are exemptions to the EMAC in which you are not liable for payment including:

• You meet the definition of newly subject.This refers to an employer who has only become subject to unemployment insurance law within the last 3 years.

• Your average employee count in the quarter is fewer than six.

Company Tax Set up in Namely Payroll

If you have fewer than six average employees in a quarter, you should submit a case in the Help Community under Payroll and the subject line MA- EMAC Tax to have the tax excluded from your company.

Please note that the employee count will need to be monitored each quarter and a case would need to be submitted if and when you have six or more average employees in the quarter.

Consult with your tax advisor if you are unsure if you are liable for this tax.

You can find more information about Massachusetts EMAC on the state's website.