With the start of a new year, there are several important reporting obligations upcoming with respect to the federal Affordable Care Act (ACA) and similar state laws.

W-2 Reporting

• Employers must include on the W-2 forms they provide to employees:
  • Health plan values (Code DD) for the 2021 taxable year, including employer HSA contributions (including employees’ pre-tax HSA contributions)  
  • Taxable income for coverage provided during 2021 (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 2021 tax year must be provided to employees no later than January 31, 2022.

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 is technically January 31 of each year. This deadline has historically been extended each year.
• For 2022 and going forward, the IRS has proposed regulations – upon which taxpayers may rely – permanently extending the due date for Forms 1095-B and 1095-C to March 2 (except in a leap year, in which case the due date would be extended to March 3).

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, 2022 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. However, employers are responsible for ensuring that this obligation is fulfilled.
• Employers with self-insured plans are responsible for distributing Form 1095-C to covered California employees.
• In addition to providing Forms 1095-B and/or 1095-C to employees, employers must also file the applicable forms with the California Franchise Tax Board no later than March 31, 2022.

State Individual Mandate Reporting – Massachusetts

• Unlike other state and local individual mandate reporting requirements, the requirement in Massachusetts mandates that employers provide covered Massachusetts employees with the state-specific 1099-HC form.
• In many cases, employers’ third-party administrators (TPAs) collect self-attestations of plans’ minimum creditable coverage (MCC) status from employers and 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, 2022.

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, 2022 (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, 2022.

State Individual Mandate Reporting – Rhode Island

• Employers must distribute Forms 1095-B and/or 1095-C to covered Rhode Island resident employees by January 31, 2022 irrespective of the federal deadline extension for these forms.
• Employers must file Forms 1095-B/C with the State of Rhode Island electronically no later than March 31, 2022.

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, 2022 (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, 2022.

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