Massachusetts has enacted a new tax on employers who have at least 6 employees and who do not provide health insurance. The 5% tax will be effective from January 1, 2018 through December 31, 2019.  The tax will be calculated based on unemployment wages, and only applies to employees who obtain health insurance coverage through the division of medical assistance or subsidized insurance coverage through the commonwealth health insurance connector authority. 

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Massachusetts - An Act Further Regulating Employer Contributions to Health Care (HB 3822) (“Health Tax”)

Aug 30, 2017

Background on Act:

Massachusetts has enacted a new tax on employers who have at least 6 employees and who do not provide health insurance. The 5% tax will be effective from January 1, 2018 through December 31, 2019.  The tax will be calculated based on unemployment wages, and only applies to employees who obtain health insurance coverage through the division of medical assistance or subsidized insurance coverage through the commonwealth health insurance connector authority.

Massachusetts is expected to provide further clarification on the process of billing the employer. We will issue an update when additional guidance is received from the state.

For More Information:

For further insights into this Act, view the following links:

MA Health Care Tax (HB 3822)