It’s time to prepare ACA state filings for the 2022 tax year. Is your organization ready?
As a reminder, on an annual basis, employers must file Forms 1094-C and 1095-C with the IRS to stay compliant with ACA reporting requirements.
In addition to the federal ACA filing and furnishing requirements, several state governments have implemented additional reporting responsibilities as a function of their Individual Mandates. As such, organizations that employ residents in select states must file a report on their employees’ health coverage to the state government. Applicable Large Employers (ALE) must also furnish copies of 1095-C forms to their employees.
Learn everything you need to know about ACA state reporting requirements for 2023 in this guide. Or keep reading for more information on how to comply.
Employee location determines employer obligation
Just because the state that your business primarily operates out of doesn’t mean you’re exempt from state reporting.
Employee location determines whether organizations are obligated to comply with additional ACA state reporting. If your organization has just one employee filing taxes in a state that mandates ACA state reporting, you must file a report in accordance with that state’s laws. With the prevalence of remote work, this is applicable to more employers than ever.
ACA state reporting at a glance
Below we provide a snapshot of states that currently require additional reporting, along with important upcoming ACA state reporting deadlines and penalties.
California state ACA reporting
The California state ACA reporting deadline for furnishing is January 31, 2023. Filing with the state is due March 31, 2023. There is a $50 penalty per every individual not reported on
D.C. ACA reporting
Employers have until March 2, 2023, to furnish applicable health information. State filing submissions are due April 30, 2023. Since that’s a Sunday this year, employers will have until May 1, 2023, to complete their filings.
Massachusetts state ACA reporting
Employers with operations in Massachusetts must furnish healthcare information to their full-time staff by January 31, 2023. State filing submissions are due on March 31, 2023. There is a $50 penalty per every individual not reported on, with a maximum of $50,000
New Jersey state ACA reporting
The New Jersey furnishing deadline is March 2, 2023. New Jersey state filing submissions are due March 31, 2023.
Rhode Island state ACA reporting
Rhode Island employers must furnish healthcare information by March 2, 2023. Filing submissions with the state are due March 31, 2023.
Individual Mandates for the following states could be forthcoming:
- Washington state
The information above is a quick glimpse into what you’ll need to know for this year’s filings. Take a deeper dive and learn how you can reduce risk by partnering with an ACA compliance expert in our guide below.
If you need assistance with ACA state reporting this year, contact Trusaic to discuss options. Our suite of ACA solutions can address your unique needs. In addition to ACA filing and furnishing, we can monitor employee coverage eligibility, calculate affordability, implement measurement periods, document offers and declinations, and defend you in the event of an IRS inquiry.
To gain invaluable insights on penalty amounts, affordability percentages, filing deadlines, expert tips for responding to penalty notices, and proven strategies for minimizing IRS penalty risk, download the ACA 101 Toolkit.