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New state and federal regulations have made it significantly easier for those who are partially or fully unemployed due to COVID-19 to access unemployment benefits. For the first time, self-employed individuals like farmers and other business owners are also eligible to collect unemployment benefits. At least some of the increased costs of the expanded unemployment benefits are being funded by the federal CARES Act (i.e. the additional $600 per week, the 13-week extension, and Pandemic Unemployment Assistance) — these costs will not impact employer rates. Other costs of COVID-19-related claims will be funded by the state and may affect employer rates, though Massachusetts has not yet offered many details on this. This webpage discusses how PPP loans and rehiring employees affects unemployment, and the page suggests that employers’ experience rates will not be impacted by COVID-19 claims unless the employer is self-insured.
Regular unemployment insurance is completely funded by employer contributions. The vast majority of employers in Massachusetts are required to make unemployment insurance contributions for their employees. This includes most employers of seasonal employees, unless the employer has a state permit as a seasonal employer. These permits are only available to employers with employees working less than 20 weeks who perform duties that are distinct from the duties assigned to employees at any other time of year (due to the climate or nature of the products or services).
Agricultural employers are generally required to pay unemployment contributions if they paid wages of at least $40,000 in every calendar quarter OR if they employed 10 or more individuals on any day in any 20 weeks in a calendar year (whether or not these weeks were consecutive or the employees remained the same).
If your business has a non-agricultural component, note that nearly all non-farm businesses must pay for unemployment insurance. Non-farms are required to payment unemployment if they paid wages of at least $1,500 in any calendar quarter, OR if they employed one or more individuals on any day in any 13 weeks in a calendar year for state unemployment insurance (whether or not these weeks were consecutive or the employees remained the same).
For more information on the specific exemptions from unemployment insurance in Massachusetts, see this link.
Unless you are exempt from paying unemployment insurance contributions, informing employees of the availability of unemployment insurance is your legal responsibility as an employer. The law requires that you clearly post a copy of this poster “Workplace Poster — Information on Unemployment Insurance Benefits (Form 2553A),” which informs employees of their right to file unemployment insurance claims, and you must also give all employees who are separated from work for seven or more days a copy of the pamphlet “How to Apply for Unemployment Insurance Benefits (0590A),” which provides accurate information on your farm to help expedite the filing of claims.
This webpage was last updated July 2020 and is based upon work supported by the U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture under award 2018-70027-28588, 2016-70017-25423, 2015-49200-24225 and by the USDA Agricultural Marketing Service through grant 16FMPPMA0002. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the USDA.