As the start of the new year approaches, there are several important reporting obligations upcoming with respect to W-2 forms, the federal Affordable Care Act (ACA), and ACA-style state laws that impose individual coverage mandates.

W-2 Reporting

• Employers must include on the W-2 forms they provide to employees:
  • Health plan values (Code DD) for the 2022 tax year, including employer HSA contributions (including employees’ pre-tax HSA contributions)  
  • Taxable income for coverage provided during 2022 (e.g., life insurance in excess of $50,000 for which employee did not pay the full Table 1 rate on an after-tax basis)
  • Imputed income of domestic partner coverage
• W-2s for the 2022 tax year must be provided to employees no later than January 31, 2023.

ACA Reporting (Federal)

• The deadline for insurers to provide individual Forms 1095-B, and for Applicable Large Employers (ALEs) and employer sponsors of self-insured plans to provide individual Forms 1095-C, to each covered individual has been permanently extended by 30 days, typically to March 2 of each year (or the next business day if March 2 falls on a weekend). In the case of a leap year, the deadline would be extended to March 1.

State Individual Mandate Reporting – California

• Employers must provide California resident employees with copies of Federal Form 1095-B (if employees are covered under a fully-insured plan) or 1095-C (if employees are covered under a self-insured plan) by January 31, 2023 irrespective of the federal deadline extension for these forms.
• For California employees covered under fully-insured plans, insurers will typically provide the required 1095-B form. Employers with self-insured plans are responsible for distributing Form 1095-C to covered California employees.
• In addition to the Forms 1095-B/C that are due to employees, employers must also file the applicable required forms with the California Franchise Tax Board no later than March 31, 2023.

State Individual Mandate Reporting – Massachusetts

• Unlike other state and local individual mandate reporting requirements that rely on the federal tax forms for compliance, the requirement in Massachusetts mandates that employers provide covered Massachusetts employees with state-specific 1099-HC form. This form is due to employees by January 31, 2023.
• In many cases, the TPAs for self-insured plans will collect attestations of the plans’ minimum creditable coverage (MCC) status from employers and then handle the 1099-HC reporting obligation on their behalf.
• In addition to providing employees with 1099-HC forms, employers must also submit 1099-HC forms to the state (or ensure that their TPAs do so on their behalf) no later than March 31, 2023.

State Individual Mandate Reporting – New Jersey

• Employers must distribute Forms 1095-B and/or 1095-C to covered New Jersey resident employees no later than March 2, 2023 (in line with the extended federal deadline).
• Employers are required to submit Forms 1095-B/C to the state electronically no later than March 31, 2023.

State Individual Mandate Reporting – Rhode Island

• Employers must distribute Forms 1095-B and/or 1095-C to covered Rhode Island resident employees by March 2, 2023 (in line with the extended federal deadline).
• Employers must file Forms 1095-B/C with the State of Rhode Island electronically no later than March 31, 2023.

Individual Mandate Reporting – District of Columbia

• Employers must distribute Forms 1095-B and/or 1095-C to covered D. C. resident employees no later than March 2, 2023 (in line with the extended federal deadline).
• Employers must also submit Forms 1094- and 1095-B/C to the D. C. Office of Tax and Revenue electronically (MyTax.dc.gov) no later than 30 days after submitting to the IRS, i.e., no later than April 30, 2023.