In California, compliance with health coverage regulations is important for residents and employers alike. The state mandates most residents to maintain health coverage or face a tax penalty. This article outlines the essential details HR professionals need to know to ensure compliance with California's health coverage reporting requirements.
California law imposes a tax assessment on residents who file state income tax returns and lack coverage for themselves, spouses, dependent children, and resident domestic partners, with only limited exceptions.
To meet these requirements, insurers and employer-sponsors of self-funded health plans must notify individuals about their 2023 health coverage and coverage offers by January 31, 2024. Compliance is typically achieved through the provision of IRS Federal ACA Tax Form 1095-B or C. While federal ACA compliance requires furnishing Form 1095-B/C in March 2024, California demands an earlier delivery by the end of January for state purposes.
For applicable large employers and coverage providers with California residents, it's imperative to note that reporting offers of coverage to the California Franchise Tax Board is due by March 31 of the following year. This ensures a comprehensive and timely fulfillment of state requirements.
As an HR professional overseeing health coverage compliance, it is essential to confirm that your 1095-B/C reporting obligations are met by January 31, 2024. Staying informed and adhering to these deadlines ensures a seamless and compliant process, avoiding potential penalties and ensuring the well-being of both employees and the organization.
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