ACA state reporting
requirements 2023

ACA State Reporting
Requirements 2023

What is ACA state reporting?

Each year, organizations must prepare their 1094-C and 1095-C filings with the IRS. Some employers must also file their ACA information with individual state governments as well, adding complexity to the annual reporting requirements. Below we identify the states that require additional ACA reporting, explain how these filing obligations came about, and discuss how organizations can reduce their risk by partnering with an expert in ACA compliance.

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History of state ACA reporting

First introduced in 2010, the ACA among many things, encourages U.S. residents to obtain health insurance, and for employers to provide it. When the law was first passed, it consisted of two main parts:

  • The Employer Mandate: Applicable Large Employers (ALEs), or employers with 50 or more full-time employees and full-time equivalent employees, must offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce and their dependents
  • The Individual Mandate: All U.S. residents were required to obtain health insurance or pay a penalty

Legislation enacted in 2017 changed how the ACA operates. That year, Congress passed The Tax Cuts and Jobs Act, which zeroed out the federal Individual Mandate, effectively eliminating it. Penalties for failing to obtain qualifying insurance were officially phased out in 2019. Since then, several states, as well as the District of Columbia, have responded by implementing Individual Mandates of their own.

State Individual Mandates:
How they affect employers

What does this mean for organizations that employ residents in states with Individual Mandates? It means they must file a report on their employees' health coverage to the state government, in addition to filing the annual 1094-C and 1095-C reports with the IRS. As a function of these additional state requirements, ALEs must also furnish copies of 1095-C forms to their employees.

Note that an organization's location doesn't affect whether it's obligated to comply with a state Individual Mandate and subsequent state reporting obligations. The deciding factor is where the employees live. So this adds an extra layer of complexity for employers that have remote workers in different states.

If your organization has just one employee filing taxes in a state that mandates ACA state reporting, the requirements apply. You must file a report in accordance with that state's laws.

Are you one of the employers bestowed with extra paperwork to file with state agencies each year? Let's find out. Below, you'll find a chart of all states that have passed Individual Mandates, plus several with requirements forthcoming.

NOTE: You may find differences from ACA state reporting requirements for 2022. Since certain states are still rolling out changes, it's worth checking twice to ensure your organization stays compliant.

California IRS 1094 and 1095-B/C Employer Distribution:
January 31, 2023
State Filing:
March 31, 2023
Connecticut Not yet released Employer Distribution:
Not yet released
State Filing:
Not yet released
District of Columbia IRS 1094 and 1095-B/C Employer Distribution:
March 02, 2023
State Filing:
April 30, 2023
Hawaii Not yet released Employer Distribution:
Not yet released
State Filing:
Not yet released
Maryland Not yet released Employer Distribution:
Not yet released
State Filing:
Not yet released
Massachusetts MA 1099-HC Employer Distribution:
January 31, 2023
State Filing:
March 31, 2023
Minnesota Not yet released Employer Distribution:
Not yet released
State Filing:
Not yet released
New Jersey NJ-1095, 1095-A, 1095-B/C Employer Distribution:
March 2, 2023
State Filing:
March 31, 2023
Rhode Island IRS 1094 and 1095-B/C Employer Distribution:
March 02, 2023
State Filing:
March 31, 2023
Vermont Not yet released Employer Distribution:
Not yet released
State Filing:
Not yet released
Washington state Not yet released Employer Distribution:
Not yet released
State Filing:
Not yet released

California

California's Individual Mandate was signed into law on July 2, 2019. It stands in place of the now defunct federal Individual Mandate. It took effect January 1, 2020.

California's state Individual Mandate law requires its residents to have MEC for a minimum of nine months out of the year. Individuals who fail to meet this requirement must pay a fine, unless they qualify for an exemption. For the 2022 tax year, the penalty is at least $850 per adult and $425 per dependent.

The mandate also includes California ACA reporting requirements for employers. Organizations must submit an annual report to show their employees (and their dependents) had MEC for a minimum of nine months during the year. Find details about reporting requirements for employers below:

California employer reporting requirements

The purpose of California ACA reporting is to ensure that state residents comply with the obligation to obtain MEC. It also allows the California Franchise Tax Board (FTB) to determine whether an employer offered the amount of coverage required by law.

Here's what employers of California residents need to know:

  • Organizations who employ California residents must file, regardless of whether the organization is located in or out of state
  • Employers must report employee insurance information with the California Franchise Tax Board (FTB) once per year
  • Information should be submitted to the state using federal Forms 1094-C, 1095-C, and 1095-B. Organizations must also distribute copies to employees.
  • You should not submit forms for employees who were offered coverage but did not enroll
  • If your organization offers full insurance plans, the insurance company may report information to the state about each individual enrolled in coverage. If the insurer fails to do this, employers can be held responsible and fined.
  • You can file electronically or by mail. The FTB encourages electronic filing. If you are filing more than 250 forms of a certain type, you must file electronically. For example, if you have 500 Forms 1095-C and 75 Forms 1095-B, you do not need to file Forms 1095-B electronically.

California ACA reporting deadlines for 2023

If your organization has a California state ACA reporting obligation, pay attention to these deadlines:

January 31, 2023

Employers must provide health insurance information (Form 1095-B/C) to current employees and former employees covered in the prior year

March 31, 2023

This is the deadline for California ACA state filing. Whether you file via mail or electronically, you must submit all forms to the FTB before this date.

Penalties for non-compliance

Employers who fail to meet the California ACA reporting requirements may be fined $50 per individual not reported on.

Connecticut

A law instituting Individual Mandates is currently under consideration in Connecticut. As of yet, there are no employer Connecticut ACA reporting requirements for the 2022 tax year.

Subscribe to the ACA Times below to ensure you stay informed of any changes as soon as they're released.

District of Columbia

The District of Columbia (D.C.) signed an individual insurance coverage mandate into law on June 26, 2018. The D.C. mandate requires local residents to obtain and hold qualifying coverage throughout the year.

The mandate went into effect on January 1, 2019. The D.C. ACA reporting requirements were officially released on August 9, 2019.

D.C. employer reporting requirements

D.C.'s Individual Mandate law includes reporting requirements for employers. We've outlined the specifics of D.C.'s ACA reporting requirements below:

  • Any organization that provides MEC to at least one D.C. resident (and their dependents) must report this information to the state government
  • Specifically, organizations must file all forms with the D.C. Office of Tax and Revenue (OTR), once per year
  • The law also requires employers to make this coverage information available (via copies of Form 1095-B/C) to insured employees
  • Only ALEs are required to file reports. The law applies to any ALEs who employ D.C. residents, regardless of whether they withhold D.C. payroll taxes
  • Fully insured employers are subject to D.C. ACA reporting requirements
  • Employers must electronically file Forms 1094 and 1095-B / 1095-C with the D.C. OTR. Paper filing is not accepted.

D.C. ACA reporting deadlines for 2023

March 02, 2023

Organizations must furnish copies of Form 1095-B/C to employees with D.C. residency by this date

April 30, 2023

This is the deadline for employers to submit their ACA reports to the D.C. OTR. Since it falls on a Sunday this year, employers have until May 1, 2023, to file.

Penalties for non-compliance

At this time, the D.C. OTR hasn't published information about penalties for non-compliant employers. However, there is a known penalty in place for individual taxpayers. Individuals who fail to obtain qualifying insurance may be fined 2.5% of their salary, or $700.

Hawaii

Hawaii ACA reporting requirements for employers are forthcoming. The state is actively working on Individual Mandate legislation.

If your organization employs Hawaii residents, it's important to check for updates frequently. You can find current news about ACA legislation and deadlines in the ACA Times blog.

Maryland

At the moment, Maryland is debating whether to institute an Individual Mandate at the state level. Employers of Maryland residents aren't required to file health insurance information with the state government at this time. Previously the state considered a bill that would create a health insurance down payment plan, but it did not pass.

But Maryland organizations (and out-of-state employers of Maryland residents) should stay tuned-changes are on the way. Check back for Maryland ACA reporting updates and other ACA news here.

Massachusetts

Since 2006, the Massachusetts Health Reform Law has required Massachusetts residents over the age of 18 to have Minimum Creditable Coverage (MCC). MCC refers to a minimum level of insurance benefits. Taxpayers who fail to acquire insurance may be subject to fines.

Also known as "Romneycare", the law aims to ensure adequate healthcare coverage for all Massachusetts residents. Since it predates the ACA, it remained unchanged when the ACA federal Individual Mandate was eliminated.

Massachusetts employer reporting requirements

Massachusetts ACA reporting requirements, or the Massachusetts Health Reform Law requirements are slightly different from those of other states. Here's what employers of Massachusetts residents need to know:

  • Unlike other states, Massachusetts requires employers to file a state-specific form called Form MA 1099-HC. This form indicates whether an individual meets the state's requirement for MCC.
  • Employers must submit Form MA 1099-HC online through the MassTaxConnect portal. They must provide copies for employees with Massachusetts residency.
  • Most insurance carriers that provide full insurance plans will submit forms MA 1099-HC on behalf of employers. However, should a carrier fail to do so, the government will hold employers responsible and may levy fines for non-compliance.
  • In addition, employers with 6 or more employees must file the Health Insurance Responsibility Disclosure (HIRD) Form once per year (electronically, via the MassTaxConnect portal)
  • This includes out-of-state employers who have at least six employees in Massachusetts

Massachusetts ACA reporting deadlines for 2023

January 31, 2023

By this date, employers must furnish copies of MA 1099-HC to employees

March 31, 2023

This is the deadline by which employers should file Form MA 1099-HC electronically through the MassTaxConnect portal

Penalties for non-compliance

Massachusetts levies fines of $50 per individual for employers that do not fulfill ACA state filing requirements. The maximum penalty is $50,000.

Minnesota

Individual mandates could be right around the corner for the state of Minnesota. The state is considering a law to implement them. But there are no official Minnesota ACA reporting requirements for employers at the time of this publishing.

Subscribe to the ACA Times to be the first to know when Minnesota passes an Individual Mandate law, and what it may require of employers. We'll publish updates as soon as any new information is released.

New Jersey

New Jersey passed an Individual Mandate law that includes requirements for employers. Signed into law on May 30, 2018, this mandate took effect on January 1, 2019.

New Jersey has state ACA reporting stipulations that employers must adhere to in addition to the federal ACA requirement to furnish Forms 1095-C to employees and file with the IRS.

If your organization employs New Jersey residents, pay close attention to the New Jersey ACA reporting requirements below.

New Jersey employer reporting requirements

  • Any organization that employs New Jersey residents must comply with New Jersey ACA reporting requirements, regardless of the number of employees. (Federal ACA law only requires employers with 50 or more employees to report health insurance information).
  • Employers that provide full insurance do not need to file a state-level report if the insurance carrier has already done so
  • Employers that participate in a multi-employer plan can avoid New Jersey ACA reporting as long as the plan sponsor files the report
  • The requirements apply to all organizations that employ New Jersey residents, regardless of whether they are located in or out of New Jersey state
  • The reporting obligation applies even if the employer does not withhold New Jersey payroll taxes
  • The forms acceptable to the government of New Jersey are: NJ-1095 forms, fully completed federal 1095-A, 1095-B, and 1095-C forms, and/or 1095-C forms with parts I and III completed
  • Employers must submit all forms electronically through the MFT SecureTransport (Axway) service. Paper filing isn't available.

New Jersey ACA reporting deadlines for 2023

Does your organization employ New Jersey residents? If so, don't miss these important dates:

March 2, 2023

Employers must furnish a 1095 form to each New Jersey resident employee to whom they provided minimum essential coverage in all or part of 2022

March 31, 2023

Employers must send 1095 health coverage forms to the New Jersey Division of Taxation by this date

Penalties for non-compliance

New Jersey has not yet stated what penalties it may impose on non-compliant employers. But it's important for organizations to adhere to New Jersey ACA reporting requirements in order to avoid any surprise fines. We'll update with more information as soon as it's available.

Rhode Island

In 2017, the ACA federal Individual Mandate was repealed, with penalties eliminated in 2019. This prompted the state of Rhode Island to pass its own Individual Mandate on July 5, 2019. This law took effect January 1, 2020.

In addition to requiring individuals to have "qualifying health coverage", Rhode Island's mandate includes reporting obligations for employers. They must inform the state government about coverage they provide to Rhode Island residents they employ. This allows the state to track compliance with the state's requirements to obtain healthcare.

Rhode Island employer reporting requirements

  • ACA state reporting requirements 2023 for Rhode Island are as follows:
  • Any employer that provided coverage for Rhode Island residents for any months during 2022 must submit a state-level report
  • Organizations must file all Rhode Island ACA reporting forms through the state's Division of Taxation website
  • The acceptable forms to submit to the Division of Taxation are: federal forms 1094-C / 1095-C
  • Employers must also provide Form 1095-B to their employees
  • These requirements are in addition to federal ACA reporting
  • For employers that provide full insurance: if the insurance carrier already files state reporting, the employer isn't obligated to do so

Rhode Island ACA reporting deadlines for 2023

The Rhode Island ACA reporting deadlines were recently extended. Previously, the filing deadline for submitting 1095-C forms to the Rhode Island Department of Taxation was January 31, 2023.

These are the new deadlines as updated in November 2022:

March 2, 2023

By this date, employers must provide copies of Form 1095-B/C to all employees (of former employees) who had insurance coverage in 2022

March 31, 2023

This is the deadline for employers to fulfill their Rhode Island ACA reporting obligation. They must submit federal forms 1095-B/C to the Rhode Island state government.

Note: These deadlines are permanent. Employers can expect the dates to stay the same each year. Rhode Island's Department of Taxation has stated that the deadline changes were made so that they align with the IRS' permanent ACA filing deadline.

Penalties for non-compliance

At this time, it's unclear whether Rhode Island will impose fines on organizations that fail to file state ACA reports. We suggest subscribing to the ACA Times for ACA state reporting information and updates.

Vermont

Vermont signed Individual Mandates into law on May 28, 2018. The law took effect on January 1, 2020. Residents are required to have qualifying healthcare coverage and report it to the state on their tax forms.

Vermont does not require organizations to report their employees' health insurance information to the state government. However, if federal ACA reporting requirements are eliminated, Vermont may require state-level reporting. Check here for Vermont ACA reporting updates as they're available.

Washington State

Washington is considering whether to implement Individual Mandates at the state level. As of 2022, this state has not yet released ACA state reporting requirements.

Does your organization employ Washington residents? If so, you might consider subscribing to the ACA Times Newsletter for updates on Washington ACA reporting requirements for employers.

Managing state ACA reporting requirements

If you've read this far, you've probably noticed that ACA state reporting requirements are complex. Keeping up with all the different regulations and reporting requirements can be a challenge for organizations.

Also, Individual Mandates are recent or forthcoming in many states. Changes are being made constantly, throwing organizations for a loop. Don't be caught off guard. Keep reading to find out how to streamline your ACA state and federal filing process.

How to simplify ACA state filing and federal filing

How can employers collect the required information, process it, and send it on time? Those who employ residents of states with Individual Mandates are obligated to provide accurate, complete data not only to the federal government, but to the state as well.

Then there's the issue of missing or disparate data. Data errors aren't just a compliance problem. They're a driver for penalties in many states. Some states are already handing down hefty fines to organizations that aren't aware of their reporting obligations.

The solution? A combination of automated software and legal expertise can help organizations ensure compliance with regulations to eliminate the risk of penalties. Fortunately, Trusaic offers comprehensive ACA reporting solutions that include:

  • Advanced software technology for optimizing data management
  • Dedicated ACA specialists to manage compliance and risk mitigation
  • Expert assistance for organizations facing IRS audits

ACA Complete: Your comprehensive federal and state ACA reporting solution

With ACA Complete, you can make your ACA reporting burden featherlight. The elite full-service compliance solution includes reporting management, seamless data integration for complete visibility, and IRS audit defense. ACA Enterprise enables your organization to offload its state and federal ACA responsibilities.

For organizations that only need assistance with ACA state reporting, we offer a stand-alone ACA state filing solution. Find the right package for your organization's unique needs on our reporting assistance page.

Achieve compliance (and peace of mind) the simple way with our ACA compliance solutions. We invite you to schedule a demo at a time that works best for you. We'll explain how our services and software make ACA compliance easy, and answer any questions you may have. You can also find more information about our ACA filing assistance products below.

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