The Massachusetts Department of Unemployment Assistance has extended the first quarter 2021 contribution deadline to Monday August 2, 2021.
On April 15, 2021, the Department extended the deadline from April 30, 2021 to Tuesday, June 1, 2021 in order to provide employers additional time due to significant rate increases for calendar year 2021. Today, they decided to further extend this deadline to continue this courtesy to employers in the state. This extension means that both first and second quarter 2021 contributions will now be due on the same day.
The Department is also considering legislation that may retroactively lower 2021 tax rates. Once this decision is made and legislation is passed, additional information will be forthcoming.
As most are aware, Massachusetts employers experienced a significant unemployment tax increase in 2021, primarily due to the drastic increase in the Solvency Assessment, which is a major component in the rate calculation. Although it has not yet been determined if Massachusetts employers will receive retroactive relief, we have already seen similar situations in six states that resulted in rate revisions.
As always, we will continue to monitor this situation and provide updates as they become available. If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.