Alert January 11, 2008

Forms 1099-HC Must be Issued by January 31, 2008

Form 1099-HC was established to help the Massachusetts Department of Revenue identify which Massachusetts residents have health insurance coverage and to assist Massachusetts residents in completing the new state income tax schedule regarding health coverage (Schedule HC). Form 1099-HC must be issued to each employee who had coverage in 2007 under an employer’s health plan (whether insured or self-insured), no later than January 31, 2008. Although the employer is responsible for issuing the form, the form can instead be issued by the insurance carrier or third-party administrator (TPA). Thus employers should verify with their health insurers/TPAs whether the insurers/TPAs will issue the Forms 1099-HC. Forms 1099-HC due by January 31, 2008 need only be prepared for employees covered under the employer’s health plan on December 31, 2007. Forms 1099-HC are filed with the Massachusetts Department of Revenue electronically, and instructions for electronic filing can be found at http://www.mass.gov using the search term Form 1099-HC. Copies of Forms 1099-HC should be retained by employers to the same extent as employers retain copies of Forms W-2 or other Forms 1099.