With a new year upon us, employers should prepare to complete ACA reporting and furnishing requirements for the 2022 tax year.
As part of the annual requirements, Applicable Large Employers must furnish Forms 1095-C to full-time employees and covered individuals and file Forms 1094-C and 1095-C with the IRS. To add a layer of complexity to the situation, employers with operations in select states must comply with additional state filing and furnishing requirements.
Below we outline federal and state ACA reporting requirements to follow in 2023.
The employer deadline for furnishing Forms 1095-C to California employees who enrolled in coverage is January 31, 2023, and no extensions are available.
Employers must also report insurance information to the California Franchise Tax Board by March 31, 2023, only if their insurance providers do not report it.
The penalty for employers that fail to report is $50 for every individual who received health coverage. No penalty will apply if the return is filed on or before May 31, 2023.
Employers with operations in New Jersey must ensure that each primary enrollee who was a New Jersey resident or part-year New Jersey resident in 2022 receives at least one 1095-C form that includes health coverage information by March 2, 2023. A part-year resident is a primary enrollee who was living in New Jersey for at least 15 days in any month.
By March 31, 2023, employers must submit 1095-C health coverage forms to the New Jersey Division of Taxation.
Rhode Island’s Department of Taxation recently permanently extended its furnishing and filing deadlines. The 2022 ACA furnishing deadline for 1095-C and applicable 1095-B forms for employers with operations in Rhode Island is March 2, 2023.
The ACA filing deadline for submitting 1094-C and 1095-C forms to the state is March 31, 2023.
Despite the state’s Individual Mandate requiring residents to obtain coverage, there are still no additional ACA reporting requirements for employers.
March 2, 2023, is the employer deadline for furnishing Forms 1095-C to Washington D.C. employees.
April 30, 2023, is the 2022 ACA filing deadline for employers transmitting forms to the state agency. The D.C. reporting law applies to employers that provide Minimum Essential coverage to individuals. Employers should submit their healthcare information electronically, as paper filings are not accepted.
Federal ACA reporting and furnishing deadlines may differ from states with their own individual mandates.
The IRS recently issued final regulations ending good-faith transition relief, or a grace period, meaning that employers need to meet stated deadlines if they want to avoid penalties. The regulations also provide employers with a permanent, automatic 30-day extension for furnishing forms 1095-C to individuals.
Below are key 2023 federal ACA deadlines to note.
February 28, 2023: Deadline to paper file annual ACA 1095-C information for the 2022 tax year. This option is only available for employers with 250 or fewer 1095-C forms.
March 2, 2023: Deadline to furnish 1095-C forms to each full-time employee for the 2022 tax year.
March 31, 2023: This is the deadline to electronically file Forms 1094-C and 1095-C. There are benefits to filing electronically, including a later ACA deadline, instant IRS acknowledgment of submission, and an immediate response about whether the submission was accepted or rejected.
July 31, 2023: Deadline for the Patient-Centered Outcomes Research Institute fees for 2022 health plans. Note these fees have increased, according to a November notice issued by the IRS.
Missing the aforementioned ACA reporting and furnishing deadlines for the 2022 tax year can result in significant penalty assessments from the IRS. Late and non-filing notices are issued via Letter 972CG and Letter 5005-A. These penalties are separate from the non-compliance notices issued via Letter 226J.
Navigating nuanced requirements and differing deadlines on your own can be complex, especially for organizations with operations in multiple states. If you need assistance managing ACA compliance requirements, including tracking offers of coverage, implementing measurement methods, calculating ACA affordability, and filling accurate, timely information with the IRS, contact Trusaic.
To see other important 2022 ACA reporting deadlines, to be met in the 2023 tax year, as well as penalty details, download the 2022 ACA 101 Toolkit.
Missing an ACA filing or furnishing deadline could land your organization a significant penalty from the IRS. To ensure you never miss one, download the ACA 101 Toolkit, which documents the various federal and state reporting deadlines.