Massachusetts EMAC - Employer Medical Assistance Contribution
Overview
The Employer Medical Assistance Contribution (EMAC) was created in 2014 after the repeal of the Massachusetts Fair Share Contribution (FSC) requirement. EMAC applies to employers with more than five employees in Massachusetts and applies regardless of whether the employer offers health coverage to its employees.
2026 Rate: 0.51% up to the annual wage cap of $15,000, which increases the potential maximum cost to $77 per employee per year.
Official Resource: https://www.mass.gov/service-details/learn-about-the-employer-medical-assistance-contribution-emac
Setting Up a Massachusetts Employer Subject to EMAC
- Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
- In the SDI section, enter the employer contribution rate assigned by the state in the SDI Rate field.
Contributions
Employers must pay contributions on the first $15,000 of each employee's wages paid during the calendar year. The amount of contributions due (liability) is calculated by multiplying these wages by the assigned rate.
When you don't file a quarterly contribution report to DUA via UI Online as required, the liability amount cannot be established and will be estimated.
Exemptions
Employers are not liable for payment of employer medical assistance contributions in a quarter whenever the average employee count is fewer than six (wages are exempt for that quarter).
Employers are also exempt when they meet the definition of "newly subject." A newly subject employer is not liable for payment of employer medical assistance contributions for up to two years after first becoming subject to the Unemployment Insurance Law.
Reduced Liability
In the two years following expiration of the "newly subject" status, employer liability is reduced through two lower contribution rates. The liability exemptions and reductions are intended to ease burdens on newly formed businesses and organizations.
2026 EMAC Rates
For wages paid in 2026, the EMAC contribution will be 0.51% up to the annual wage cap of $15,000, resulting in a maximum cost per employee of $77 per year.
Reporting and Payment Requirements
Employers, including those with "newly subject" status, must file a quarterly Employment and Wage Detail Report and pay contributions in full by the quarter due date to avoid interest and penalties.
You can log in to report wages, file payments, change your address, and authorize access for an agent who does business on your behalf at www.mass.gov/dua any day of the week between 6:00 a.m. and 10:00 p.m.
Enforcement
Interest: Accrues on unpaid principal at the rate of 12% per year from the quarter due date until fully paid.
Audits: Employer records may be periodically subjected to an audit performed by a DUA representative. Dunning activities may include estimation of liability.
Late filer penalty: May be assessed.
Payment intercepts: DUA may intercept any payments due to an employer from the Commonwealth of Massachusetts.
Funds Differentiation
EMAC receipts are credited to employers' accounts but are wholly and entirely independent of the unemployment insurance contribution collections and its trust fund.