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April 17, 2020
2020-1026

Massachusetts COVID-19 UI benefits will not be charged to employer accounts

The Massachusetts Division of Unemployment Assistance (DUA) announced that contributory employer accounts will not be charged with workers' unemployment insurance (UI) benefits attributable to COVID-19. (Employer notice, April 2020.)

In addition, nonprofit organizations and government employers that chose to reimburse the state for UI benefits will only be required to reimburse the state for 50% of COVID-19 UI benefits.

One-week waiting period and work-search requirements waived for workers filing COVID-19 UI benefit claims

Recently enacted legislation (SB 2599, Chapter 40) waives the one-week waiting period for COVID-19 UI benefits. Workers filing for COVID-19 UI benefits will be paid for the first week of unemployment if their UI benefit claim was filed on or after March 10, 2020.

According to the employer notice, workers will be considered unemployed due to lack of work regardless of whether the individual's workplace is partially or completely shut down or if the individual needs to stay home for any reason related to COVID 19.

To fulfill the DUA requirements to be able, available and actively seeking work, workers need only take reasonable measures to maintain contact with their employer, and to be available for hours offered by the employer.

Workers will be presumed to be eligible for eight weeks of "standby status." In those instances, the employer need not respond that the claimant is on standby. In cases where it is necessary, employers may request the DUA extend standby status for longer than eight weeks.

Good cause for missing hearings/appeals deadlines due to COVID-19

Emergency regulations permit the DUA to excuse missed deadlines during the processing of a claim, such as responding to fact finding questionnaires and requesting an appeal, if the reason for failing to meet the deadline is due to COVID-19. (DUA website.) The DUA will grant good-cause waivers to both workers and employers for missing deadlines for hearings and other appeals.

For more information, see the DUA's COVID-19 webpage and the DUA's employer frequently asked questions.

See the state's COVID-19 website for more information.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (Peter.berard@ey.com)

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