Non-profit organizations and other entities that self-insure their unemployment insurance (UI) now have two extra months to pay their pay their UI bills for the period August 2020 through March 2021.

The Department of Unemployment Assistance (DUA) issued notices to reimbursable or self-insured employers on June 29 confirming their UI bills for the August-March period will now be due on August 31, 2021. Employers who have already submitted payments will have their accounts credited.

DUA resumed its monthly billing cycle for the period that began June 14, meaning reimbursable bills issued on June 14 will have a due date of July 14. 

The Fiscal Year 2021 budget approved by the Massachusetts Legislature had granted non-profit employers, many of whom are reimbursing employers, until today to begin making good on their pandemic-era UI payments. 

The August 31 date aligns with the extension provided to contributory employers’ first- and second-quarter 2021 UI payments. Contributory employers pay into the state UI system through a traditional payroll tax versus self-insured employers who pay on a per-employee basis.

Following legislation passed in May to shield employers from an unexpected surge in the solvency assessment rate, the DUA plans to re-calculate employer rates this summer and issue new bills in time for August.

“We remain grateful to the administration and the legislature for their recognition and understanding of the problems faced by all types of employers in the Commonwealth throughout the COVID-19 state of emergency,” said Brooke Thomson, AIM’s EVP of Government Affairs.

“The rate re-calculations and the extensions granted to employers will free up much-needed resources in real time, allowing employers to focus on re-opening their businesses, welcoming their teams back to work, and making sure we get the Massachusetts economy back on track in a safe and effective way.”

AIM has consistently throughout the pandemic highlighted employer concerns to the Baker Administration and both branches of the Legislature. Foremost among those concerns has been

the unemployment insurance pressures brought on by COVID-19.

Government leaders in other states continue to allocate a portion of the American Rescue Plan Act stimulus money to pay down the negative balance in their UI trust funds and reduce the COVID-19 unemployment insurance obligation.  AIM continues to advocate that a portion of federal stimulus similarly go towards offsetting Massachusetts’ UI trust-fund deficit to alleviate employer UI costs as the economy strives to recover.

AIM applauds state leadership for their work to steer Massachusetts through the COVID-19 pandemic and looks forward to continuing the partnership to safeguard and strengthen the business community in the months to come.

For more information or further assistance on UI related inquiries, please contact Sam Larson at slarson@aimnet.org or Vasundhra Sangar at vsangar@aimnet.org.