The MA Department of Unemployment Assistance (DUA) recently announced that it modified the Employer Medical Assistance Contribution (EMAC) regulations to exclude employees under age 18 (minors) from the EMAC supplement tax assessment. The change was made to prevent unintended consequences of the regulations.
The EMAC supplement tax was created under An Act to Further Regulating Employer Contributions to Health Care, which was signed into law by Governor Baker in August 2017, and effective January 1, 2018. The EMAC supplement tax is a temporary tax due to expire on December 31, 2019. It was put into place to help offset the costs for employees who have coverage through MassHealth or subsidized coverage through the Massachusetts ConnectorCare Program until longer-term reform measures can be put into place.
For more information about EMAC and its impact on employers, be sure to read HR Insights, Issue 6.