12- 172 C.M.R. ch. 2, § 12 - Severance Pay
A. Severance pay is
considered remuneration for personal services, and as such, is defined as wages
in accordance with subsection 19 of Section 1043 of the Employment Security
Law.
B. Contributions on severance
pay, including payments made pursuant to Section 625-B of Title 26, shall be
due on or before the last day of the month following the close of the calendar
quarter in which the severance pay was paid to the individual. The contribution
rate shall be based on the employer's experience rating record and determined
from this reserve ratio in accordance with subsection
4 of Section 1221, of the Employment
Security Law.
C. The severance pay
will be exempt from contributions if the remuneration paid to the individual,
in the form of wages, during the same calendar year exceeded the amount of
wages specified in paragraph A of subsection 19 of Section 1043 of the
Employment Security Law.
Notes
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