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mflid
January 22, 2020
Question

Massachusetts EMAC/UHI Contribution and Supplemental Contribution payroll Items and liability adjustments

  • January 22, 2020
  • 1 reply
  • 0 views

I am hoping I can find some help with the following questions regarding the Massachusetts EMAC/UHI Contribution and Supplemental Contribution payroll Items and liability adjustments;

 

1) Can anyone give specific details on how both the Massachusetts EMAC/UHI Contribution and EMAC/UHI Supplemental Contribution payroll items should be set up in QuickBooks Desktop with specifically with regard to the type for mapping? Is it supposed to be "other" or "none"? 

 

2) In which area should these items have been entered into each employees account?  Unser the "Additions, Deductions & Company Contributions" section or under the "Taxes" "Other" section?  

 

3) While I have paid the EMAC/UHI and EMAC Supplemental liabilities that the DUA calculated, Quickbooks never calculated the amounts or showed the liability due, and I am unsure how to adjust the liability in QuickBooks. When I go to adjust payroll liabilities, should it be adjusted it as a company adjustment or an employee adjustment? 

 

Any help on this would be greatly appreciated!

1 reply

E
Emily M
January 22, 2020

Welcome to the Community, @mflid.

 

I’m happy to provide some information in regard to the Massachusetts Contribution and Supplemental Contribution payroll items and liability adjustments. You must track and pay this tax yourself.

 

Let me guide you how:

 

  1. For tracking purposes, create a Company Contribution payroll item with a Tax tracking type of None.
  2. Add this new payroll item to each employee profile in the Additions, Deductions, and Company Contributions section.
  3. Create the necessary liability adjustment per employee if there are paychecks created before adding the item.
  4. The State of Massachusetts Department of Unemployment mandates that all unemployment taxes including health insurance taxes (EMAC) be electronically filed with the agency. The agency states what taxes are due when the wage list data is filed for the quarter. For further information on how to file view the state website here.

 

There could be several reasons why the liabilities were never calculated, even though you have already made the payments. Ultimately, you should reach out to an accounting professional to ensure the decision made is best for your business.

 

For further information about Massachusetts EMAC follow the link below:

 

https://quickbooks.intuit.com/learn-support/en-us/insurance-and-medical-benefits/massachusetts-emac-in-online-and-desktop-payroll/00/370825

 

Some customers have found this article about scheduled liabilities helpful:

 

https://quickbooks.intuit.com/learn-support/en-us/liability-schedules/scheduled-liabilities-payroll-show-as-overdue-or-in-red/00/369469

 

Don’t hesitate to reach back out to me if you have additional questions.

M
mflidAuthor
January 22, 2020

Thank you for the response Emily.

 

Why is this set up as a Company Contribution rather than a Company Paid Other Tax?

 

The issue I have now is that the payroll items were added last year, however, the tracking was set to "Other" rather than "None" and the item was included under Taxes "Other" rather than in the Additions, Deductions & Company Contributions section. How do I correct that now?

Michael K
Michael K
January 22, 2020

Hey there, @mflid. Thanks for providing an update!

 

The contribution is setup using Company Contribution for tracking purposes. This is the official designation for this tax in our Payroll System and is the one you should use as mandated by your state.

 

You can correct the payroll item by following these super easy steps:

 

  1. Go to Lists on the top menu bar, then Payroll Item List.
  2. Right-click the item and click Edit.
  3. Hit Next twice. Enter the correct tax tracking type. Then select Next.
  4. Choose the correct taxes. Then click Next.
  5. Select Calculate Based on Quantity. Then select Next.
  6. Enter the limit type, if all the employees have the same rate and limit.
  7. If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
  8. Hit Finish.

 

That's it! Please let me know if there's anything else I can do to be of assistance — cheers to a safe and productive week ahead.

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