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NEWSLETTER
Practical Computer Advice
from Martin Kadansky
Volume 3 Issue 12 December 2009
In This Issue
If you own a business that's a Massachusetts employer, don't miss this new urgent online deadline
Method 1: Have your payroll service set up your UI account with your help
Method 2: Set up your UI account yourself
Where to go from here
 
If you own a business in Massachusetts with employees on your payroll, or your out-of-state business has at least one Massachusetts employee on your payroll, you must take action (described below) by January 8, 2010 or your 4th quarter 2009 payroll taxes will not get filed. This may subject you to late fees and penalties. Read on for my advice on how to comply with this requirement by the deadline.
If you own a business that's a Massachusetts employer, don't miss this new urgent online deadline

Starting with the 4th quarter of 2009, Massachusetts has changed the way employers report their wages and file their state payroll taxes. If this affects your business, you must use your computer to set up your account in the new system by January 8, 2010, and then use this system (or authorize your payroll service to use it on your behalf) going forward.

Does this affect me?
If:
  • You own a business (e.g., you're a Sole Proprietor, owner of a corporation, etc.), and
  • Your business is located in Massachusetts and you have employees on your payroll, or your business is out of state but you have at least one Massachusetts employee on your payroll
then this issue affects you, even if your business does not have any current unemployment tax obligations.

However, if:
  • You don't own a business, or
  • You run a business with no employees (e.g., you don't have a payroll, the only workers you use are all contractors), or
  • You run a business with employees on your payroll but your business is located outside of Massachusetts and none of your employees live in Massachusetts
then (as far as I understand it) this probably doesn't affect you. However, I'm not a payroll or unemployment expert, so to be sure I recommend you talk to your accountant or the DUA to be sure.

What happens if I do nothing?
If this change applies to you and you fail to comply by the deadline of Friday January 8, 2010, then you (or your payroll service) won't be able to file your 4th quarter 2009 payroll taxes with Massachusetts. This may subject you to late fees and penalties.

What changed?
Starting with the 4th quarter of 2009, Massachusetts Quarterly Wage reports and unemployment tax obligations will no longer be collected by the Department of Revenue. Instead, employers must now file with the Massachusetts Division of Unemployment Assistance (DUA) using their new online Unemployment Insurance (UI) system called QUEST (Quality Unemployment System Transformation).

Normally this is the kind of change that only a payroll service would find interesting, but this time for reasons that I have yet to understand, the Commonwealth has made every employer throughout Massachusetts (plus every employer in the world that has any Massachusetts employees) responsible for setting up their own UI account in the new system.

I've been through the first part of this process for my business and I've researched the remaining steps, so I can tell you how to efficiently navigate through this poorly-explained and strangely last-minute process.

I strongly urge you to deal with this now. If you wait until the deadline and have a problem, you'll likely find that the people who can help you (your payroll service or the DUA) will be swamped with calls and difficult to reach.

You may be wondering why the Commonwealth couldn't have just transferred your employer information from the old system to the new one without involving you. If they were so concerned about the accuracy of the information in their system, they could simply have sent you a letter explaining how to use the new system and detailing what they had on file for your business, asking you to correct any mistakes. In my opinion this would have made much more sense. Alas, we now return to the real world.

Ok, this applies to my business. What do I have to do?
Here's an overview of the process:
Part 1: Activate your UI account
  • The DUA should have already sent you a letter announcing QUEST and giving you your Temporary Password.
  • Using your computer, go to the http://www.mass.gov/uima web site and "activate" your Employer Account in the new system using your Employer unemployment Account Number (not listed in the letter) and Temporary Password.
Part 2: Finish setting up your UI account
  • Wait for the DUA to mail you their information packet, containing your permanent User ID and another Temporary Password.
  • Go back to http://www.mass.gov/uima web site and sign in to your Employer Account with your User ID and Temporary Password.
  • Enter a new permanent password for your account.
  • Use this account to file your payroll taxes going forward, or authorize your payroll service to be your Third Party Administrator (TPA) so they can file on your behalf.
There are two ways to get through this process:
  • At each major phase of the process, give your payroll service the information they'll need to set up your UI account for you, or
  • Set up your UI account yourself
Method 1: Have your payroll service set up your UI account with your help

Assuming your payroll service is willing to help, having them activate your UI account is probably the easiest approach. You should ask what they charge to do this, if anything.

Part 1: Having your payroll service activate your UI account
In order to activate your UI account, your payroll service will need:
  • Your Temporary Password from the DUA letter you should have received in November or December announcing QUEST
  • The name of the person who will be the Administrator for your UI account and their contact information (phone, title, email)--typically you or a trusted employee
  • How you prefer to be contacted by the DUA regarding any missing information--either email or US Mail
  • A list of the business owners and officers, including name, home address, SSN, title, percent of ownership (must add up to 100%), and first date of ownership--if you're a Sole Proprietor, then you are the only (100%) owner
Part 2: Having your payroll service finish setting up your UI account
After your account is activated and you receive your information packet (which the DUA will mail to you, not to your payroll service), your payroll service will then need:
  • Your permanent User Id and new Temporary Password from the packet
  • The permanent password you'd like your UI account to have
This will enable them to access your UI account and set their service up as your Third Party Administrator (TPA) so they can file on your behalf going forward.
Method 2: Set up your UI account yourself

What you'll need
In my experience, if you gather all the information you need in advance, activating your UI account yourself (Part 1) takes about 30 minutes. You'll need all of the information listed above under Method 1, plus the following:
  • Your Unemployment Assistance Employer Account Number (EAN), which is an 8-digit number the DUA assigned to your business back when you (or your payroll service) started reporting wages to them; this number is usually written in the form NN-NNNNN-N, and it does not appear in the DUA letter announcing QUEST; the easiest place to find it is on the quarterly tax reports from your payroll service (under "Unemployment ID" or "MA Unemployment ID Number"), or the annual Unemployment Insurance Contribution Rate letter that the DUA mails to you each January (under "Employer Number"). If you still can't find this number, I'd call your payroll service or the DUA because you cannot get the process started without it.
  • Your business address and phone
  • The 2-digit TPA ID number for your payroll service, if you use one; you'll use this to authorize them to be your Third Party Administrator so they can file your wage reports and payroll taxes with the DUA on your behalf
  • Your payroll service's phone number, if you use one; mine was very helpful during this process
Here are the steps to set up your account. I suggest you print these instructions for easier reference.

Part 1: Activating your UI account yourself

Step 1: Open your web browser and go to http://www.mass.gov/uima - You'll land on the "DUA QUEST" web page (see picture, below). If you get an error, there is a note on this page that may mean it's only available Monday through Friday, 7 a.m. to 7 p.m. Eastern time, excluding weekends and holidays. If you're unable to use it, try again during these hours.

DUA QUEST web page

Step 2: Click once on the "Employer Login" button. This will take you to the "Massachusetts Division of Unemployment Assistance: Employer Login" page.



Step 3: Don't type anything in the "User ID / Password" fields--you don't have a User ID yet! Instead, click once the "Account Activation" link (underlined) at the bottom left.



Step 4: You'll land on the "Activate Your Account" page. In the "Employer Account Number(EAN)" field, type your 8-digit EAN, without any dashes. In the "Activation Password" field, type your Temporary Password from the DUA letter announcing QUEST. Click once on the "Next" button.



Step 5: You'll land on the "Welcome to UI Employer Account Activation!" page. Click once on the "Next" button.



Step 6: You'll land on the "Administrator Information" page. You must fill in the fields marked with red asterisks (*), the other fields are optional. Don't type spaces in your phone numbers, only dashes. Click once on "By checking this box...," then click once on the "Next" button.



Step 7: You'll land on the "Contact Information" page. If the Administrator should also be contacted if the DUA has any questions about your activation, click once on the "Same as Administrator" checkbox. Otherwise, leave it unchecked and fill in the correct name and contact information. Then, click once on the "Next" button.



Step 8: You'll land on the "Communication Method" page. If you prefer to be contacted via email, simply fill in your email address. If you prefer to be contacted by mail, click on "Email" and change it to "US Mail," and leave the E-Mail field blank.

Step 9: Under "Business Information," most small business would answer "No" to all three questions (Use a common paymaster? Act as a Leasing Company? Have employees that perform services that may be exempt under Section 6 of MGL 151A?), but if you're not sure, check with your payroll company or accountant. Then, click once on the "Next" button.



Step 10: You'll land on the "Legal Address" page. You'll see the legal address on file with the DUA. Make any corrections if appropriate. You must fill in the fields marked with red asterisks (*), the other fields are optional. Don't type spaces in your phone numbers, only dashes. Then, click once on the "Next" button.



Step 11: You may land on an "Address Validation" page. Click the radio button (little circle) next to the most accurate street address listed, and then once on the "Next" button.



Step 12: You'll land on the "Massachusetts Physical Location" page, asking if your business is physically located in Massachusetts. If so, click once on the "Yes" radio button, and then once on the "Next" button.



Step 13: You'll land on the "Massachusetts Physical Location Address" page. You'll see the address on file with the DUA. Make any corrections if appropriate, or if your Location is the same as your Legal address, next to "Same as" click once on "None" and change it to "Legal." Then, click once on the "Next" button.



Step 14: You may land on an "Address Validation" page. Click the radio button (little circle) next to the most accurate street address listed, and then once on the "Next" button.



Step 15: You'll land on the "Add/Modify Owner/Officer Information" page. Don't type anything in just yet! Instead, scroll to the bottom of the page to the list of business owners under "Review/Select Owner/Office Information." You'll probably see your name listed, with no SSN, no Contact Information, and no % Ownership. Click once on the radio button (little circle) to the left of your name, then click once on the "Modify" button.



Step 16: The same page will reload, and you should see your name in the fields under "Add/Modify Owner/Office Information." Enter your social security number in the SSN field. If you are paid through your business' payroll, click "Yes" next to "Is the owner/officer compensated for their services?", otherwise click "No."

Step 17: Under "Additional Information," enter your home address, click on "President" and choose your Business Title, enter your Percent of Ownership (100 for a Sole Proprietor), and First Date of ownership (month/day/year). Then, click once on the "Save" button.



Step 18: You may land on an "Address Validation" page. Click the radio button (little circle) next to the most accurate street address listed, and then once on the "Next" button.



Step 19: The same page will reload. Scroll to the bottom of the page to the list of business owners under "Review/Select Owner/Office Information." You'll probably now see your name listed, with your SSN, your home address, and your correct % Ownership. If you need to enter additional owners, scroll back to the top and enter the next owner. Otherwise click once on the "Next" button.



Step 20: You'll land on the "Activation Complete" page, confirming that you'll receive your permanent User ID and second Temporary Password via US Mail. Do not click the "Login" button, since you won't be able to log in until you receive this information in the mail from the DUA. Instead, close your browser, you've finished Part 1.

Part 2: Finish setting up your UI account yourself

When you receive the information packet containing your permanent User ID and another Temporary Password that the DUA will mail to your business address:

Step 1: Open your web browser and go to http://www.mass.gov/uima
If you get an error trying to load this web page, there is a poorly phrased note on it that may mean it's only available Monday through Friday, 7 a.m. to 7 p.m. Eastern time, excluding weekends and holidays. If you're unable to use it, try again during these hours.

Step 2: Click once on the "Employer Login" button. This will take you to the "Massachusetts Division of Unemployment Assistance: Employer Login" page.

Step 3: In the "User ID" field, type your permanent User ID. In the "Password" field, type the corresponding Temporary Password, then click once on the "Login" button.

Step 4: You'll land on the "Reset Password" page. In the "Current Password" field, type your Temporary Password, and in the "New Password" field type the new password you'd like to use. Type it again in the "Re-enter new password" field. Pick a security question, enter the corresponding Security Answer, and enter a 4-digit PIN Code. Write this information down in a safe place, then click once on the "Save" button

Step 5: You'll land on the "Employer Home" page. Click once on the "Account Maintenance" link (underlined).

Step 6: You'll land on the "Account Maintenance" page. Click once on the "Third Party Administrator (TPA) Authorization" link (underlined) at the bottom of the page.

Step 7: You'll land on the "Third Party Administrator (TPA) Authorization" page. Click once on the "New" button.

Step 8: You'll land on the "Assign Third Party Administrator (TPA)" page. In the "TPA ID" field, enter the 2-digit TPA ID number for your payroll service, then click once on the "Next" button.

Step 9: You'll land on the "Third Party Administrator (TPA) Information" page. In the "TPA Services Begin Date" field, enter the date that your payroll service will begin performing services for you. Leave the "End Date" field blank. In the list under "Un-assigned Roles," your payroll service should be able to tell you which Roles they need you to assign to them. Click once on each corresponding checkbox to select it. Then, click once on the "Save" button.

Step 10: Close your browser.

Step 11: Give your permanent User ID and Password to your payroll service.

That's it, you've finished setting up your UI account!
Where to go from here
  • Decide whether you want your payroll service to handle most of the account activation steps for you, or whether you want to do it all yourself. Either way, get started on this today.
  • If you didn't receive or can't find the letter from the DUA containing your initial Temporary Password, or after activation you haven't received your permanent User Id and second Temporary Password, I'd call the DUA Employer services in Boston at (617) 626-5075 or the Unemployment Insurance question line at (617) 626-6560.
  • When it comes to this activation process, I've found that the people at my payroll service are accessible, knowledgeable, and happy to help.
If you know someone who might find this helpful, please feel free to forward it.
If you have any comments about this article, send me a reply!
If you have a topic that you'd like me to write about, I'd love to hear about it!
How to contact me:
email: martin@kadansky.com
phone: (617) 484-6657
web: http://www.kadansky.com

On a regular basis I write about real issues faced by typical computer users. To subscribe to this newsletter, please send an email to martin@kadansky.com and I'll add you to the list, or visit http://www.kadansky.com/newsletter

Did you miss a previous issue? You can find it in my newsletter archive: http://www.kadansky.com/newsletter

Your privacy is important to me. I do not share my newsletter mailing list with anyone else, nor do I rent it out.

Copyright (C) 2009 Kadansky Consulting, Inc. All rights reserved.

I love helping people learn how to use their computers better! Like a "computer driving instructor," I work 1-on-1 with small business owners and individuals to help them find a more productive and successful relationship with their computers and other high-tech gadgets.

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