While employers are actively preparing for Form 1094 transmissions to the IRS under the federal Affordable Care Act, employers in some states may also have state reporting requirements.
The federal Affordable Care Act requires almost all Americans to have health insurance coverage or pay a tax penalty. Starting with the 2019 plan year, the federal government reduced the tax penalty for not having health coverage to $0, thereby effectively eliminating the individual mandate.
Some states, worried about only the sickest residents enrolling in their health care exchanges, responded to the end of the federal individual health coverage mandate by implementing their own state-based individual health coverage requirements. These states require their residents to have qualifying health coverage or pay a fee with their state taxes.
Some of the states that implemented a state-based individual health coverage mandate also require employers and health insurers to report information about health coverage, much like what is required under the federal Affordable Care Act. Employers with employees in these states may have to comply with both state and federal ACA reporting requirements.
The following states impose health coverage and/or reporting obligations on employers:
Employers who employ or cover individuals who reside in any of the states above should review state reporting and form distribution requirements. BAS can help with meeting state ACA mandates. For information about BAS’ State Affordable Care Act data collection and form distribution services, contact your account manager or Solutions@basusa.com.
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