The State Of Massachusetts enacted the Massachusetts Healthcare Reform law, effective tax year
2007 requiring all employers to provide employees residing in the state of Massachusetts with
state form 1099-HC showing proof of coverage as of 12/31/2007 and report coverage information
electronically to the state.
By January 31st of each year beginning with 2008 for tax year 2007, employers must furnish
1099-HC forms to their employees to whom they provided health insurance and who are Massachusetts
residents and submit an electronic report in XML format to the Massachusetts Department of
Revenue (DOR). This law applies to all employers, regardless of their state location or domicile.
Individuals (Employees) use the 1099 HC information to complete their annual Massachusetts
Resident State Income Tax Return, which includes new Schedule HC. Failure to provide this
proof of insurance may result in the loss of their personal exemptions, which is the penalty
imposed on individuals who have failed to secure health insurance.
Employers who fail to comply with these requirements may be subject to a penalty of $50 per
employee multiplied by the number of forms which were required - but not filed.
Solution? 1099-HC Printing and Processing is available from IRSCompliance. IRSCompliance
can provide the service that your company needs to process and access the individual's and
dependent health care coverage information, generate required forms to the covered individual
and file the required information in a format and filing schedule as specified by the state.
As additional states enact similar legislation that requires health care reporting, 1099
Pro and IRSCompliance will incorporate the required processes and services to comply.
1099-HC Forms and Information