Section 2.06 - Optional Coverage for Self-employed Individuals or Employers Not Subject to M.G.L. c. 175M(1) A self-employed individual may elect coverage under M.G.L. c. 175M and become a covered individual for an initial period of not less than three years.(2) To elect coverage a self-employed individual shall, during a period designated by the Department, file a Self-employed Notice of Election with the Department through the Massachusetts Department of Revenue's MassTaxConnect system and thereafter register, file, and make contributions to the Family and Employment Security Trust Fund pursuant to 458 CMR 2.03, 2.04 and 2.06.(3) The election shall be effective on the date the Self-employed Notice of Election is accepted by the Department, but a self-employed individual who elects coverage shall not be eligible to receive paid leave benefits until the individual has remitted the required contributions for at least two out of four completed calendar quarters.(4) A self-employed individual who elects coverage shall be responsible for the full contribution amount, based on that individual's income from self-employment. If a self-employed individual elects coverage and thereafter fails to remit contributions owed for the required minimum period of three years, coverage shall be terminated. At the discretion of the Director, the self-employed individual may be disqualified from electing coverage thereafter as a self-employed individual, but shall not be precluded from obtaining coverage as an employee or covered contract worker. A self-employed individual who elects coverage and thereafter fails to remit contributions for at least three years shall not be disqualified from future coverage if the individual was not required to remit such contributions because the self-employment ended, or the individual moved away from Massachusetts.(5) A self-employed individual who is required to be treated as a covered contract worker by a covered business entity to whom the self-employed individual provides services and whose payment for those services is subject to contributions pursuant to 458 CMR 2.05(3), may elect coverage and remit contributions on additional income from self-employment that is unrelated to services provided to a covered business entity.(6) An employer may become a covered employer under M.G.L. c. 175M by submitting an Employer Notice of Election through an officer, director or principal of the employer in accordance with the filing requirements set forth in 458 CMR 2.04 and: (a) Electing coverage and remaining a covered employer for a minimum term of one year;(b) Complying with all audits or requests for information from the Department; and(c) Certifying that the employer shall provide the Department with not less than 60 calendar days notice before withdrawing its Notice of Election to be a covered employer. The election shall be effective on the date the Covered Employer Notice of Election is submitted through the Massachusetts Department of Revenue's MassTaxConnect system and is accepted by the Department, but a covered employer that elects coverage shall not be eligible to receive paid leave benefits until the covered employer has remitted the required contributions for at least two out of four completed calendar quarters.
A covered employer that has elected coverage pursuant to 458 CMR 2.06(6) and that has failed to remit contributions for more than two out of four completed calendar quarters shall be disqualified from coverage.
(7) For purposes of 458 CMR 2.00, reporting of the adoption of M.G.L. c. 175M, § 10 is completed by filing through the Federal Employer Identification Number(s) of the municipality, district, political subdivision or authority.(8) Housing authorities, regional school districts and regional planning commissions which are not part of a municipality, district, political subdivision or its instrumentalities, may adopt the provisions of M.G.L. c. 175M § 10 through a vote of their governing bodies. Horace Mann Charter Schools' employees are considered municipal employees for the purposes of collective bargaining. Therefore, Horace Mann Charter Schools are subject to the decision of the municipal legislative body as to the adoption of M.G.L. c. 175M. The Department will individually evaluate a request by any municipality, district, political subdivision or authority that does not fall within this definition.
Adopted by Mass Register Issue 1394, eff. 6/28/2019.Amended by Mass Register Issue 1422, eff. 7/24/2020.