Matt Hollister No Comments

Free Webinar: How to Comply with Cafeteria Plan Rules– March 28th, 12 PM EST

HR360’s attorney-developed webinar will highlight key Section 125 cafeteria plan rules, tax advantages, eligible benefits, and more. To register for this webinar, simply click on the link below!

Webinar: Section 125 Cafeteria Plan Rules
When: Wednesday, March 28th at 12:00 PM ET
Presented By: Kylan Johnson, Supervisor of Legal Content

Register Here for HR360’s Cafeteria Plan Rules Webinar

This important webinar will cover the following cafeteria plan topics:

  • Employer and employee tax advantages
  • Nondiscrimination and documentation requirements
  • Eligible benefits
  • Employer contribution rules
  • Mid-year election changes by employees
Sign up to attend this webinar today!
Matt Hollister No Comments

2018 Employer Medical Assistance Contributions (EMAC) Payment Update

For those employers that are being assessed under the new Employer Medical Assistance Contribution (EMAC) Supplement, the payment statement will now include a line item for EMAC Supplement balance.  This Supplement only applies if the non-disabled employee was enrolled in Mass Health (not including the premium assistance program) or subsidized coverage through the Massachusetts ConnectorCare program for more than eight weeks during the quarter. Employers may begin submitting their wage filings for the first quarter in 2018 as of April 1, 2018.  The due date of unemployment contributions is April 30, 2018.

The submission and payment process has not changed, but will just include the new line item. The EMAC supplement contribution is 5% of annual wages for each affected employee, up to the annual wage cap of $15,000 which results in a maximum of $750 per employee per year. The contribution will not apply to any employees who earn less than $500 in wages in that quarter. 

Role of Third-Party-Administrators:

Third-Party Administrators (TPAs) who are currently assigned the payment role will be able to view the employer’s total liability, including the EMAC Supplement.  TPAs will also be able to see which employees triggered the Supplement, but only if they are assigned one of the new TPA roles. Effective immediately, employers will be able to assign one of the following roles:

  • EMAC Supplement View Only (view employee level detail, but can’t appeal)
  • EMAC Supplement Appeal Submission (view and appeal employee level detail)

To assign your TPA to one of these new roles, you must access your employer account and then go to:

  1. Employer Home
  2. Account Maintenance
  3. Third Party Administration Authorization
  4. Search for the TPA
  5. Select the TPA from the list
  6. Third Party Administrator Details, click modify

For more information please visit: https://www.mass.gov/service-details/new-tpa-roles-for-employer-medical-assistance-contributions-supplement-action-may

Matt Hollister No Comments

2018 Federal Tax Withholding Guidance Released

The Internal Revenue Service (IRS) has released Publication 15 (Circular E), Employer’s Tax Guide, for use in 2018. This publication:

  • Details employers’ federal tax responsibilities;
  • Explains the federal requirements for withholding, depositing, reporting, paying, and correcting employment taxes;
  • Lists the forms employers must give to their employees, those that employees must give to the employer, and those that the employer must send to the IRS and Social Security Administration; and
  • Features the tax tables to calculate the taxes to withhold from each employee.

Publication Highlights
Highlights of the 2018 publication include the following:

  • Social Security and Medicare Tax for 2018. The Social Security tax rate is 6.2% each for the employee and employer. The Social Security wage base limit is $128,400. The Medicare tax rate is 1.45% each for the employee and employer. There is no wage base limit for the Medicare tax.
  • 2018 Withholding Tables. The publication includes the 2018 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding.
  • Withholding Allowance. The 2018 amount for one withholding allowance on an annual basis is $4,150.

Click here to access the 2018 IRS Publication 15.

For additional tax information, please visit our section on Employer Tax Laws.