A Guide to ACA Reporting at the State Level

What employers must know!

Tackling your ACA reporting to the IRS and your obligation to distribute all the recipient copies. As more and more states require ACA reporting at the state level as well, this adds to the administrative work on your end. 

Let’s go through each state with an individual mandate and address what that means for employers and individuals. We will also cover what new responsibilities employers will have going forward in these states. 

Why are states adding individual mandates? 

Let’s start with the basics, states are not putting individual mandates in place with the sole purpose of adding to the administrative duties of business owners. There was originally a federal individual mandate, this was struck down by Congress effective in tax year 2019. 

Some states feel that the individual mandate was effective. Therefore they are setting an individual mandate at the state level. 

The state individual mandate is in place at the state level to help control health insurance pricing. When healthy individuals are required to purchase health insurance plans, they are much more likely to do so. When more individuals are purchasing health insurance, this drives down costs for everyone. 

Which states have an individual mandates in place? 

The following states currently have an individual mandate:

  • New Jersey
  • District of Columbia
  • Massachusetts
  • California

What are the filing requirements for New Jersey?

Employers who operate out of or employ residents from New Jersey must file Forms 1094 and 1095 with the state of New Jersey. They must also distribute recipient copies. 

The deadline to file with the state is the same as the IRS deadline. The recipient copy deadline is March 2, 2021 and the deadline to e-file is March 31, 2021. There is no option to mail paper forms to the state of New Jersey, they must be filed electronically, using the MFT Secure transit program, the same system that employers use to file their Form W2s. 

What are the filing requirements for the District of Columbia?

Employers who operate out of or employ residents from the District of Columbia must e-file Forms 1094 and 1095 with the D.C Office of Tax and Revenue. They must also distribute recipient copies. 

The D.C deadline to distribute recipient copies is the same as the IRS deadline, March 2, 2021. The deadline to e-file ACA Forms with the D.C Office of Tax and Revenue is April 30, 2021 

What are the filing requirements for Massachusetts?

Massachusetts is unique in that it has a specific form that employers must use for their ACA reporting. This is the Form MA 1099-HC, which must be filed electronically with the Department of Revenue. ACAwise supports both the Form MA 1099-HC and has the ability to file it electronically on your behalf. 

The deadline to distribute the Form MA 1099-HC is February 1, 2021 and the deadline to e-file with the Massachusetts Department of Revenue. 

What are the filing requirements for California? 

Employers who operate out of or employ residents of California must file Forms 1094 and 1095 and distribute recipient copies. 

The deadline to distribute recipient copies is January 31, 2021. The deadline to e-file ACA Forms with the California State Franchise Board is March 31, 2021 

Does TaxBandits support state filing? 

Yes! Currently TaxBandits supports state filing for New Jersey and the District of Columbia. As states continue to add requirements for ACA reporting, our team will continue to expand filing to more and more states. 

Need to get started on your ACA reporting with the IRS or the state? TaxBandits helps speed up your filing process with prepaid credits and our bulk upload feature. 

Create your free TaxBandits account today and begin e-filing your ACA Forms!

ACA Forms

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