As of January 1, 2014
The Unemployment Health Insurance (UHI) contribution has been replaced by the Employer Medical Assistance Contribution (EMAC), which will be dedicated to subsidized health insurance programs in the Commonwealth. There are no changes with regards to the process of filing quarterly wage and employment reports; employers must continue to report this information via UI Online.
UI Online will apply the applicable EMAC rate and calculate the proper EMAC contribution that is due based on the wage submission. Employers are required to pay EMAC if they are also subject to unemployment contributions and employ an average of 6 or more employees during the quarter that is being filed.
EMAC Rates Effective January 1, 2014:
- Years 1 and 2: New employers subject to unemployment contributions for the first time will continue to be exempt for the first two years.
- Year 3: Employers in their third year of previously being subject to UHI will pay an EMAC rate of 0.12%.
- Year 4: Employers in their fourth year of previously being subject to UHI will pay an EMAC rate of 0.24%.
- Year 5 and over: Employers in their fifth year or more of previously being subject to UHI will pay an EMAC rate of 0.36%.
TCI Benefits are Now Available
The new Temporary Caregiver Insurance Program (TCI) was signed into law on July 11, 2013 with benefits becoming available beginning January 5, 2014. TCI provides eligible claimants up to four weeks of caregiver benefits to care for a seriously ill child, spouse, domestic partner, parent, parent-in-law or grandparent, or to bond with a newborn child, new adopted child or new foster-care child.
This is a new benefit administered by the TDI division. There is no new tax being taken from your employees to cover this benefit. TDI taxes will be withheld from employees at a rate of 1.2% of their first $62,700 in gross pay in 2014 – a maximum tax of $752.40. The rate remains the same as in 2013, with the limit raised from $61,400.
For additional information, please visit the TDI page of the RI Department of Labor and Training website or review their TCI brochure.
How Much Will I Owe?
Because Rhode Island and Connecticut unemployment systems have borrowed from the Federal Unemployment Fund and had outstanding loans for 2 or more years, a .9% surcharge will be assessed in December retroactive to January 1, 2013.
This means an extra $63.00 for each employee that had $7000 in earnings during the year. We will calculate the surcharge and add it to your 940 form, however we need to pay the extra amount and did not collect it into escrow during the year.
Datapay will debit this surcharge on 1/13/14
Your Company May Need to Provide Notice
If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013.
The notice should inform employees:
- About the Health Insurance Marketplace;
- That, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance in the Marketplace; and
- That if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits
The U.S. Department of Labor has two model notices to help employers comply. There is one model for employers who do not offer a health plan and another model for employers who offer a health plan or some or all employees: