Current through Register 1518, March 29, 2024
(1) No employer
shall be permitted to make contributions, excepting on the basis of wages
paid.
(2) The employer's
contributions accrue at the time the wages are actually or constructively paid
by the employer.
(a) Wages are constructively
paid when they are credited to the account of or set apart for the employee so
that they may be drawn upon by him at any time although not then actually
reduced to possession. To constitute payment in such a case the wages must be
credited or set apart to the employee without any substantial limitation or
restriction as to the time or manner of payment or condition upon which payment
is to be made; must be made available to him so they may be drawn at any time;
and their payment must be brought within his own disposition.
(b) Wages, earned from an insolvent employer,
due but unpaid shall be deemed to have been paid when earned for the purpose of
establishing an individual's benefit rights.
(3) Each employer who is determined to be
liable for contributions, shall be liable on so much of his payroll as is
subject to M.G.L. c. 151A, § 14 or 14C. Liability for contributions is on
wages paid by an employer in each calendar year to any individual performing
service for him that is subject in Massachusetts. This is without regard to:
(a) Any earnings which he may have had in
employment not subject under M.G.L. c. 151A.
(b) Any employment which the individual may
have had with another employer in the same calendar year whether or not subject
in Massachusetts.
(4)
Contributions on wages paid by an employer shall be due and payable on the last
day of the first month succeeding the quarter in which such wages were paid.
(a) Beginning with the quarter ending
December 31, 2007, employers who file quarterly unemployment insurance
contribution reports which report a total quarterly payroll of $ 50,000 or more
shall file such reports using a form and means of electronic transmittal
prescribed by the Commissioner.
(b)
Beginning with the quarter ending December 31, 2007, employers who file
quarterly unemployment health insurance contribution reports which report a
total quarterly payroll of $ 50,000 or more shall file such reports using a
form and means of electronic transmittal prescribed by the
Commissioner.
(c) Any employer that
becomes subject to the provisions of 430 CMR 5.03(4)(a) or (b) remains subject
to such provisions even if the total quarterly payroll it reports drops below
the threshold specified in 430 CMR 5.03(4)(a) and (b).
(d) Beginning with the quarter ending
December 31, 2008, all employers who file quarterly unemployment insurance
contribution reports shall file such reports using a form and means of
electronic transmittal prescribed by the Commissioner.
(e) Beginning with the quarter ending
December 31, 2008, all employers who file quarterly unemployment health
insurance contribution reports shall file such reports using a form and means
of electronic transmittal prescribed by the Commissioner.
(f) The Commissioner may assess a penalty as
set forth in M.G.L. c. 151A, § 15(a) or M.G.L. c. 151A, § 14G(g),
whichever is applicable, against employers who are required to file quarterly
unemployment insurance contribution reports and employers who are required to
file quarterly unemployment health insurance contribution reports using
electronic transmittal as prescribed by the Commissioner and who file but fail
to use such electronic transmittal.
(5) The due date for the filing of reports
and the payment of contributions for the quarters which have elapsed because of
any retroactive effect of M.G.L. c. 151A on a subject determination of an
employer shall be the last day of the first month succeeding the month in which
the fact occurred making the employing unit subject. The due date for reports
for each subsequent quarter shall be the last day of the first month succeeding
the date on which the quarter ended.
(6) Whenever any individual or type of
organization engaging the service of another believes the relationship of
employer and employee does not exist, he or it shall file with the Commissioner
a statement of relevant facts for determination. The individual performing the
service shall be deemed an employee until and unless the Commissioner
determines otherwise.
(7) If a part
of the service performed by an individual in the employ of an employing unit
during a pay period constitutes employment, that part shall be deemed to be in
included services notwithstanding that the remainder does not constitute
employment. If part of the service is in employment and part is not in
employment as defined but such parts cannot be separated, the whole of such
service shall be deemed to be in employment.
(8) While an employer is subject to the law,
and until his liability for filing contribution reports has been suspended by
the Department, such reports shall be submitted by such employer, even though
no wages were paid, for each quarter during which he is subject to the
law.
(9) The prescribed employer
quarterly contribution form will be regularly furnished each employer by the
Department without application therefor insofar as possible. Employers not
supplied with the proper form shall make application therefor to the Department
in ample time to have their reports prepared, verified, and filed with the
Department on or before the due date.
(10) Any employing unit which would otherwise
be subject to M.G.L. c. 151A because of the provisions of
430 CMR 5.02(2)(b)
shall be exempt from M.G.L. c. 151A until
its payroll for services performed in Massachusetts is in excess of $ 200.00 in
a quarter.
(11) For the purposes of
M.G.L. c. 151A the term "agricultural labor" as used in section 6(a), except as
otherwise provided in M.G.L. c. 151A, §§ 4A(d) and (e) shall have the
meaning assigned to such term by subsection (g) of section 3121 of the Internal
Revenue Code of 1954.
(12)
(a) Each employer shall insure that any third
party which makes a payment included in the term "wages" solely by reason of
M.G.L. c. 151A, § 1(s)(A)(1)(i) notifies such employer for whom the payee
performed services, within 15 days of payment, and provide the following
information to said employer:
1. The name and
social security account number of the payee.
2. The amount of gross wages paid the payee
pursuant to M.G.L. c. 151A, § 1(s)(A)(1)(i).
(b) The wages described in M.G.L. c. 151A,
§ 1(s)(A)(1)(i) shall be deemed paid when the employer receives the notice
or otherwise obtains knowledge of the payment.
(c) The employer shall pay contributions on
said wages as required by M.G.L. c. 151A.
(13)
Use of Payroll Processing
Services.
(a) An employer may use
a payroll processing service to file quarterly unemployment insurance
contribution reports and quarterly unemployment health insurance contribution
reports with the Commissioner. In such situations, the employer and the payroll
processing service shall be subject to the following provisions:
1. All payroll processing services who file
quarterly unemployment insurance contribution reports on behalf of 500
employers or more for at least one quarter during a calendar year shall file
such reports using a form and means of electronic transmittal prescribed by the
Commissioner.
2. All payroll
processing services who file quarterly unemployment health insurance
contribution reports on behalf of 500 employers or more for at least one
quarter during a calendar year shall file such reports using a form and means
of electronic transmittal prescribed by the Commissioner.
3. Beginning with the quarter ending December
31, 2007, all payroll processing services who file quarterly unemployment
insurance contribution reports on behalf of any employers for any quarter
during a calendar year shall file such reports using a form and means of
electronic transmittal prescribed by the Commissioner.
4. Beginning with the quarter ending December
31, 2007, all payroll processing services who file quarterly unemployment
health insurance contribution reports on behalf of any employers for any
quarter during a calendar year shall file such reports using a form and means
of electronic transmittal prescribed by the Commissioner.
(b) All payroll processing services subject
to 430 CMR 5.03(13)(a) 1. through 4. shall remit payment covering the total
liability of all employers for whom such reports are submitted either in the
form of a single check enclosed with the reports or through a single electronic
funds transfer in a form prescribed by the Commissioner.
(c) Any payroll processing service that makes
payment through electronic funds transfer shall register with the Division in
accordance with the procedures prescribed by the Commissioner and by a date as
determined by the Commissioner. A payroll processing service need register only
one time; provided, that any changes in the information listed on the
registration form must be reported immediately to the Commissioner.
(d) To be timely paid, a payment made through
electronic funds transfer must be credited to the Division's designated bank
account by the statutory payment due date for each quarter. If the statutory
date for making such payment falls on a Saturday, Sunday or legal holiday,
payment may be timely made on the next succeeding business day.
(e) A payroll processing service that becomes
subject to 430 CMR 5.03(13)(a) through (d) remains subject to even if the
number of employers for which it is reporting drops below the threshold number
specified in 430 CMR 5.03(13)(1)(a)1. and 2.
(f) Failure of a payroll processing service
to comply with 430 CMR 5.03(13)(a) through (e) may result in the payroll
processing service losing permission to file reports on behalf of
employers.
