Section 10.08 - Contributions Due under M.G.L. c. 149, Section 189(1)Employer Medical Assistance Wage Base. Except as otherwise provided for in 430 CMR 10.00, employer medical assistance contributions are payable on the employer medical assistance wage base, provided that remuneration paid to any employee during any quarter in which the employer has fewer than six employees is not subject to the contributions required by M.G.L. c. 149, § 189. Such remuneration is not wages for purposes of the employer medical assistance wage base.(2)Liability of Newly Subject Employers. (a)Exemption for Newly Subject Employers. To ease the burden on newly formed businesses and organizations, any employer "newly subject" as defined in M.G. L. c. 151A, § 14(i)(2) and(3), is exempt from payment of employer medical assistance contributions until it has been an employer for not less than 12 consecutive months.(b)Reduced Liability under M.G.L. c. 149, § 189, for the Two Successive Calendar Years. Employers otherwise liable for employer medical assistance contributions under M.G.L. c. 149, § 189, whose "newly subject" status expires on the preceding December 31st shall make employer medical assistance contributions as follows in the two subsequent calendar years: First Calendar Year: 12% of the employer medical assistance wage base.
Second Calendar Year: 24% of the employer medical assistance wage base.
(3)Employer Medical Assistance Contributions Rates for Companies Involved in Ownership Changes. 430 CMR 10.08(4) provides instruction in determining the contribution rates applicable under M.G. L. c. 149, § 189, for companies involved in a change of ownership during the calendar year. In developing 430 CMR 10.08(4), the Department was guided by the existing law governing rate-setting for unemployment insurance contributions.(a)Acquisition. The following rate-setting and payment procedures apply under M.G.L. c. 149, § 189, whenever an employer acquires another employer during the calendar year, or acquires substantially all assets of said employer: If otherwise liable for contributions under M.G.L. c. 149, § 189, the acquiring employer retains its employer medical assistance contributions rate for the remainder of the calendar year in which the acquisition takes place. The acquiring employer is allowed "credit" for employer medical assistance contributions paid by the acquired employer on employee wages prior to the acquisition. Beginning the January 1st following the acquisition, the higher of the two rate schedules that would have been applicable to the acquiring or acquired employer shall become the effective rate.
Following the acquisition, if some portion of the acquired employer still exists as a separate entity, that employer, if otherwise liable for contributions under M.G.L. c. 149, § 189, continues with the same rate that applied prior to the acquisition. Said employer would receive credit for payments made prior to the acquisition for any employees who remain with that employer.
(b)Partial Successorship. If an employer acquires part of the business, organization, or trade of another employer, the employer medical assistance contribution rates of the two employers will remain unchanged as a result of the ownership change. The acquiring company will not be credited with payments remitted on wages paid by the former employer during the calendar year.(c)Consolidation. If two or more employers merge to form a new corporation, the new entity is not a "newly subject" employer within the meaning of M.G.L. c. 149, § 189(d). For the year in which the consolidation takes place, the higher of the employers' rate schedules prior to consolidation will be applied to wages paid by the new entity. Contributions on wages paid by the transferring employers during the calendar year in which the consolidation takes place will be credited to the new entity.(d)Whole Successorship. If an employing unit not subject to M.G.L. c. 151A acquires an employer, the resulting entity is not considered "newly subject" within the meaning of M.G.L. c. 149, § 189(d). The rate schedule of the acquired firm applies to wages paid by the newly formed organization. Contributions on wages paid by the acquired employer during the calendar year in which the ownership change takes place will be credited to the new entity.Amended by Mass Register Issue 1312, eff. 5/6/2016.Amended by Mass Register Issue 1313, eff. 5/6/2016.