Confused about a specific term or acronym? Solve the mysteries of terminology with this informative resource. Updated regularly with industry-specific vocabulary and concepts, the Glossary provides easy-to-understand definitions of tax-related terms.
Magnetic Media Reporting Use of a computerized method of filing information with government agencies, such as magnetic tape, diskette, cartridge, or electronic filing from one computer to another.
Mandatory Support Withholding that is court-ordered and usually paid to a court or childsupport enforcement agency. Phrases in a support order such as“order served” or “notice of order” identify a mandatory support order.This lien type has a high priority.
Mass Partial Unemployment Partial unemployment of a large number of workers in a given employing unit occurring at approximately the same time and arising from a reason common to all such workers.
Mass Separation Notice A report in some States of a mass separation sent by an employer to the State agency listing the names of workers separated and other required data thus eliminating the need for individual separation notices.
Maximum Benefit Amount (MBA) See Maximum Benefits Payable (MBP)
Maximum Benefits Payable (MBP) The maximum amount of benefits an individual may receive during a benefit year (or duration of benefits). Also referred to as Maximum Benefit Amount (MBA).
Maximum Potential Benefit Amount The largest amount of benefits for weeks of total unemployment that an individual may receive under a State or Federal unemployment insurance law.
Maximum Potential Duration The highest number of weeks of total unemployment for which benefits are payable to any claimant in a benefit year or other period of eligibility under a State or Federal unemployment compensation law.
Maximum Weekly Benefit Amount (MWBA) The highest weekly benefit amount for a week of total unemployment as provided under a State or Federal unemployment compensation law.
Medicaid Program Federally funded medical support for low-income families.
Medical Support The legal provision for payment of medical and dental bills. It can be linked to a parent's access to medical insurance.
Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65. It is funded through the hospital insurance component of FICA. Employer and employee pay matching amounts; no annual wage limit.
It is funded through the hospital insurance component of FICA. Employer and employee pay matching amounts; no annual wage limit.
Merger Two or more related entities combine their accounts by filing articles of merger with the Secretary of State. The state unemployment agency must be notified of all mergers, acquisitions and divestitures.
Merger / Acquisition / Divestiture Analysis When a business transfer takes place through merger acquisition or divestiture some states allow the new company the option of transferring the experience rate of the Predecessor Company. Certain states require the transfer of experience. The transfer can be made in whole or in part dependent on state regulations and the scope of the business change.
This analysis compares the projected experience rate of the Successor Company with and without the combined experience of the merged company. If the transfer of experience is elected, the successor company is then liable for all unemployment benefit liability attached to the predecessor account. This analysis is to allow employers to elect the method that can create a savings opportunity.
Each state has unique regulations regarding experience transfer. Each state requires that the appropriate agency be notified of any business change. Many states will not allow a transfer if the sole reason for the change in status is a reduced unemployment tax rate. The employers involved must show that the transfer took place for valid business reasons. In addition, some states require a transfer if there is common ownership between the predecessor and successor employers. Common ownership may exist if the owners of each entity are related by blood or marriage. Also,if the same individuals have the controlling interest of stock or have controlling voting shares in both entities, common ownership may exist.
Many states have specific criteria for determining common ownership. In states in which a transfer of experience is optional, the employer has the opportunity to potentially save hundreds or thousands in unemployment tax dollars. To realize such savings, it should determine whether a transfer is more beneficial than retaining its current rate or if the successor is a new employer, whether the rate after a transfer is lower than the new employer rate.
Merit Rating Upon being qualified to do business in a state an employer will receive a state unemployment insurance (SUI) account number. States regulate a period of liability or chargeability in which an employer must serve to be a "qualified" employer. Once served, the employer will receive a rate based on its experience called the "merit" rate. (Also see: New Employer/Non-Merit Rate)
Minimum Wage The lowest hourly amount an employer can pay employees under federal or state law.
Missouri Compensation (MO Comp) A discount provided to employers for the timely remittance of income tax withheld from employees working in the state of Missouri.
MO Comp See Missouri Compensation.
Monetary Determination A written notice issued to inform an individual whether or not the individual meets the employment and wage requirements necessary to establish entitlement to compensation under a specific program and, if entitled, the weekly and maximum benefit amounts the individual may receive.
Most Recent Bona Fide Work Work accepted in good faith with the earnest intent on the part of both the employee and the employer that it be of a continuing nature, from which a worker is last separated prior to filing a claim.
Most Recent Employer This unemployment insurance benefit charging method, used by several states, charge the individual's most recent employer for all benefits paid. An employer is defined as the most recent employer in differing ways, including if it employed the individual for a specified minimum number of days or weeks, or paid the claimant a specified minimum amount of wages.
Multi-Jurisdiction Multi-Jurisdiction is a feature that allows the accumulation of tax/taxable information under the same file number for an employee who changes tax jurisdictions and tax statuses (state, local, worked-in, lived-in, exempt, non-exempt) during the course of a calendar year. W-2s for each jurisdiction will be produced at year-end.