ACA filing for the 2022 tax year is fast approaching. Employers with operations in Rhode Island should take note of the recent changes made regarding ACA filing and furnishing.
Late last month, Rhode Island’s Department of Taxation issued a statement regarding the upcoming annual ACA furnishing and filing deadlines. Per the new requirements, for the 2022 tax year, employers with operations in Rhode Island must furnish their 1095-C and applicable 1095-B forms by March 2, 2023, previously January 31, 2023.
The ACA filing deadline for submitting 1095-C forms to the Rhode Island Department of Taxation has changed as well. The new deadline for filing the 2022 forms 1094-C and 1095-C is March 31, 2023, previously January 31, 2023.
Organizations should note that these new deadlines are permanent. Every year going forward, employers with operations in Rhode Island will need to file and furnish their ACA information by the aforementioned deadlines. In the official notice issued by the Department of Taxation, the agency makes clear that the changes were made to align “with IRS’ permanent Affordable Care Act (ACA) filing deadline change.”
Rhode Island Individual Mandate
Like many other states, including California, New Jersey, Washington D.C., and Massachusetts, Rhode Island has its own Individual Mandate. Rhode Island’s Individual Mandate was signed into law on July 5, 2019, and first went into effect for the 2020 reporting year. As a part of these mandates, state residents must obtain coverage or face a penalty. To help each state’s government enforce this, employers must complete additional ACA reporting obligations.
Through the collection of ACA 1095-C forms from employers, state agencies can identify which employees obtain coverage through their employer and can cross reference it with information obtained from the state health exchange.
Residents found in violation of Rhode Island’s Individual Mandate for the 2022 tax year can face a penalty of $695 for adults, and $347.50 for children, or 2.5% of gross income if the individuals are above the tax filing threshold, whichever is greater.
At this time there is no additional ACA penalty for employers that fail to meet the additional reporting requirements of Rhode Island.
Upcoming ACA reporting deadlines
As a reminder, the state ACA filing requirements in Rhode Island, California, New Jersey, Washington D.C., and Massachusetts are in addition to the federal requirements under the ACA’s Employer Mandate.
Under the ACA’s Employer Mandate, Applicable Large Employers, or employers with 50 or more full-time employees and full-time equivalent employees must:
- Offer Minimum Essential Coverage to at least 95% of their full-time employees (and their dependents) whereby such coverage meets the Minimum Value
- Ensure that the coverage for the full-time employee is affordable based on one of the IRS-approved methods for calculating affordability
The federal IRS filing deadline for the 2022 tax year is February 28, 2023, if paper filing, and March 31, 2023, if filing electronically.
Organizations must also meet the federal furnishing requirements as well – the deadline to furnish the 2022 1095-C forms is March 2, 2023. Rhode Island employers should note that meeting the federal furnishing deadline satisfies the state requirement, so they will not need to furnish twice.
Help with ACA state reporting
Meeting the requirements of the ACA’s Employer Mandate is difficult on its own. When you throw additional state ACA reporting obligations into the mix, it makes upholding compliance all the more challenging. Failing to comply can be costly too. Now that the IRS has received an additional $80 billion in funding and has cleared its historic backlog, the agency is ramping up enforcement and is projected to increase ACA penalty assessments over the next several months.
Fortunately, organizations have solutions for managing ACA compliance responsibilities and state reporting duties. Trusaic’s full-service solution, ACA Complete, tracks employees for healthcare eligibility, calculates affordability, establishes the appropriate measurement method, develops an IRS audit defense, and meets both IRS and state filing/furnishing requirements.
With the stakes for ACA non-compliance increasing, organizations must proceed with caution. To see how ACA Complete can help your business, contact us to schedule a demo. If you sign up before December 31, 2022, we will waive the entire setup fee.
For more information on 2022 ACA deadlines, penalty amounts, affordability calculations, and five common ACA compliance mistakes to avoid, download the 2022 ACA 101 Toolkit below.
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.