Unemployment Insurance

"Associated Industries of Massachusetts and its 3,300 member companies worked diligently to support the freeze and we are grateful for the collaborative approach taken by the Legislature and the Baker Administration." Brooke Thomson, Executive Vice President of Government Affairs

Unemployment Insurance for employers and workers in the Commonwealth

AIM worked with policymakers throughout the development of the legislation to ensure it balanced the needs of employers and workers, ensuring public-health protections and encouraging economic recovery.

 

Top 6 changes to Unemployment Insurance

PPP loans

For pass-through entities (including LLCs, S Corps, & partnerships) eliminates the state income tax (5%) on forgiven Paycheck Protection Plan (PPP) loans.

Unemployment taxes

Employers will avoid a 60% increase in unemployment taxes. The tax schedule has been frozen for the next 2 years.

New Unemployment Surcharge

Establishes a new unemployment insurance surcharge on employers. This surcharge will pay the interest on debt the Commonwealth took from the federal government to cover unemployment insurance.

New bond of up to $ 7 billion

Authorizes a new bond of up to $7 billion to pay the debt the Commonwealth took from the federal government to cover unemployment insurance.

The deadline to pay state income tax on unemployment insurance

Extends the deadline to pay state income tax on unemployment insurance benefits that individuals received during the pandemic

A hardship waiver that eliminates state taxes on unemployment benefits.

Creates a hardship waiver that eliminates state taxes on unemployment benefits. Individuals with household incomes equal to or less than $25,760 (1 person) - $89,320 (8 persons) will qualify**.

"This legislation takes a thoughtful and comprehensive approach in delivering critical relief to facilitate economic recovery for the people of Massachusetts,” Governor Charlie Baker "

— UI Freeze Represents Key Step for Economic Recovery
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