Vision Payroll

This week’s question comes from Michelle, a small business owner. I have not had to pay Massachusetts HICA tax all quarter. Now I have to pay it with the last payroll of the quarter. Why do we have to pay Massachusetts HICA tax this payroll? Answer: The Massachusetts Unemployment Health Insurance Quarterly Contribution (HICA) is required when the average employee count is six or greater for a quarter. Employers must pay contributions on the first $14,000 of each employee’s covered wages during the calendar year. The amount of the contribution is derived by multiplying these wages by an assigned rate. The health insurance contribution rate is 0.12% for most subject employers. Employers operating within two calendar years following the newly subject status pay at rates of 0.04% and 0.08% respectively. Contact Vision Payroll if you have any further questions.

This week’s question comes from Carolyn, a business owner. I recently hired some new employees. Am I required to file Massachusetts Form 1700-HI? Answer: Employers in Massachusetts should count the number of employees who worked or received pay for any part of the pay period that includes the twelfth of the month for each of the three months in the quarter. If the sum of those three numbers is eighteen or more, then the employer is required to file Form 1700-HI and pay tax at the rate assigned by the Massachusetts Division of Unemployment Assistance. Contact Vision Payroll if you have any questions on Form 1700-HI, Health Insurance Quarterly Contribution Report.