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

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-...

Some customers have found this article about scheduled liabilities helpful:

https://quickbooks.intuit.com/learn-support/en-us/liability-schedules/scheduled-liabilities-payroll-...

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

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?

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.

Thank you for your reply, Michael.  

I have a few additional follow-up questions;

1)  I was able to change the Tax Tracking to from "Other" to "None", however, I am not able to change the Type from "Other Tax" to "Company Contribution".  How do I handle that change and/or does it really matter as long as the liability is being calculated correctly? The calculated amount does not show up on the Employee's paystub, it shows up only on the Paycheck Details screen under Company Summary as a liability. 

2)  Regarding the setup of both the EMAC/UHI and the EMAC Supplement payroll items;

Under the "Calculate Based On Quantity" screen "Neither" was originally selected instead of "Calculate this item based on quantity" as you said; However, the liability seems to be calculating correctly with "Neither" selected. The Neither option states "Select this item if you want this payroll item to be based on a percent of Net or Gross, or a flat amount per paycheck".  What is the reason you instructed me to select the first option rather than Neither, and is that the option that should be selected for both Payroll Items?

3)  When making the payroll liability adjustment for the "EMAC Supplement" due (as determined & calculated by the state when submitting quarterly wage reports), should the adjustment be a "Company Adjustment"  or an "Employee Adjustment"? The reason I ask is that the State of Massachusetts provides the details on the calculation showing the specific employee(s) and wage base the liability is calculating on.  

Any additional help would be greatly appreciated!

QuickBooks gives you options on how you setup your payroll item, mflid.

When editing a payroll item, you can change the Tax Tracking Type however, the Payroll Item type can’t be modified. Other Tax is a tracking type. Company Contributions on the other hand is a payroll item type. Every time you choose a tax tracking type to either Other or None, QB provides definitions on where it’ll be withheld and on what tax forms it’ll show. You can refer to those as your guide on what option to choose. 

It’s possible that you’re using manual paycheck that’s why my colleague suggested you to select the Calculate this item based on quantity option. Though, you still have the option to go back to the payroll item setup whenever you want to make changes.

We can create an Employee Adjustment for the payroll liability so it’ll reflect on your employee’s W-2s. Here’s how:

1. Go to the Employees menu.
2. Click Payroll Taxes and Liabilities.
3. Select Adjust Payroll Liabilities.
4. Enter the Date of the Adjustment and the Effective Date when it'll be posted. 
5. Select Employee and from the drop-down, choose the affected employee. 
6. If you have other employees that needs a payroll adjustment, just click the Next Adjustment button at the upper-right.
7. Click OK once done. 

I have article attachments here as your guide looking into your payroll liabilities:

• Run payroll liability balances report
• Adjust payroll liabilities in QuickBooks Desktop

Keep me posted if you have further questions. 

Could you walk me through step by step for adding the EMAC/UHI to my payroll item list

Hey there, @ACAlisa. 

Thanks for chiming in on this thread. I hope your day is going well so far. 

If the steps above from all the other colleagues didn't help, then I suggest contacting our Customer Support Team. They'll be able to walk you through the step by step instructions with their screen share tool. Here's how: 

1. Go to the Help menu. 
2. Press the QuickBooks Desktop Help option. 
3. Click the Contact Us button. 
4. Give a brief description of the problem and tap Let's talk.. 
5. Scroll down and choose to Get a callback. 

That's all there is to it! 

Keep us updated on the situation. We want to ensure that you're taken care of. Have a splendid day and weekend ahead!