By The ACA Teams
In our recent webinar, we covered new state filing requirements for employers offering self-insured coverage that go above and beyond the required federal filings. The first states to require ACA state filings were New Jersey and Washington D.C.; both went into effect for the 2019 reporting year. More states are following suit in 2020 and beyond. Please read on for specifics!
REQUIRED FILING IN REPORTING YEAR 2020
New Jersey
New Jersey‘s filing deadline is March 31. Typically, only self-insured plans need to be reported since most fully-insured plans are reported by the insurance carrier. However, the new rule requires filing by all employers who offer self-insured coverage.
The file submission format is the same as the one used by the IRS; however, forms should be filtered to only include NJ residents. The state requires employers to contact New Jersey’s Division of Revenue and Enterprise Services (DORES) for electronic filing of the 1095-C forms. The state has a special submission platform here where returns must be uploaded. Mailing in paper forms is NOT an option. PLEASE NOTE THAT WE HAVE FULFILLED THE FILING REQUIREMENT FOR OUR CLIENTS FOR ANY NEW JERSEY RESIDENTS UNDER SELF-INSURED PLANS.
If you are fully-insured or your employees receive insurance through a third party such as a union plan, you are not required to file. However, we do recommend that you contact the insurers to make sure the state filing has been completed.
Washington D.C.
Reporting for Washington D.C. was due June 30, 2020, for the 2019 tax year. For 2020 and beyond, the deadline will be moved up to April 30th.
Filing will take place on the mytax.dc.gov platform. Mailing in paper forms is NOT an option.
There is no current employer penalty in place for not filing, but we do expect that to change. The individual penalty for not having insurance is equal to 2.5% of salary or $700 per taxpayer, whichever is greater. PLEASE NOTE THAT WE HAVE FULFILLED THE FILING REQUIREMENT FOR OUR CLIENTS FOR ANY WASHINGTON D.C. RESIDENTS UNDER SELF-INSURED PLANS.
STATES TO BEGIN REQUIRING FILING IN 2020 AND BEYOND
California
California‘s mandate will be effective for the first time in the 2020 tax season.
The file submission format is expected to be like the one used by the IRS but we’re still waiting for details on that. The penalty for employers who fail to comply is $50 per individual not reported to the state. The individual penalty for not having insurance is equal to the greater of $695 per adult (and $375.50 per child under 18) or 2.5% of annual household income. Click here to see more.
The California mandated distribution deadline will not be automatically extended to mirror the federal deadline. This means that employers must furnish forms to California employees by January 31, 2020, regardless of whether the IRS extends the federal distribution deadline. Employers should work with their ACA reporting vendor to ensure that forms are distributed in a timely manner.
Rhode Island
Rhode Island has no current employer penalty assessment in place for not filing, but we expect them in the future. The individual penalty for not having insurance is 2.5% of household income or $695 per taxpayer, whichever is higher. More details on Rhode Island’s mandate can be found here.
Vermont
Vermont does not require reporting by employers unless the ACA’s reporting requirements are eliminated at the federal level. Please refer to their website for additional details.
Some of the upcoming states considering implementing end-of-year filings for ACA are Connecticut, Hawaii, Maryland, Minnesota, Washington. As states continue to add reporting requirements, we will of course stay on top of all mandates to assist you with your filings!
And be sure to stay tuned for more updates from us on state filing for 2020 reporting and beyond!