California Employers and ACA Reporting

Posted by BAS - 12 May, 2022


When the federal Affordable Care Act tax penalty for not maintaining health coverage was reduced to $0, many states implemented their own mandates for residents to carry appropriate insurance. California was one of those states. California residents (and their dependents) are required to have individual, Marketplace or employer-provided health coverage or pay a state tax penalty.

With limited exceptions, the California law imposes a penalty tax on any resident who files California income tax returns and does not have coverage for themselves and their spouses, dependent children and resident domestic partners.

Employers that sponsor self-funded health plans along with other providers of health coverage must report offers of coverage to the California Franchise Tax Board by March 31 of the year following the coverage year. An employer that does not properly report may be subject to fines per individual per tax year.

The California state ACA filing must be made by May 31, 2022. Transmitting information to the California State Franchise Board is the way to satisfy the employer reporting requirement.

Topics: Health Care Reform (ACA), Affordable Care Act, HR & Benefit Plans, HR & Benefits News

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