ACA State Filing Simplified: Meet Your Massachusetts and California Deadlines with TaxBandits

As businesses and tax professionals gear up for the impending IRS Form 1099 and Form W-2 deadlines on January 31st, there’s another significant date to mark on your calendar. 

Massachusetts and California have a deadline for applicable employers and insurance providers to complete and distribute State ACA Forms to their recipients by January 31st.

You may be wondering – already? The answer is yes! While the federal recipient copy distribution deadline has been permanently moved forward to March 2nd of each year, states with mandated filing set their own deadline. 

The States of Massachusetts and California have some upcoming requirements that may affect your business and/or your clients.  Don’t worry, we are breaking down what these requirements are, when they are due, and how you can meet them with TaxBandits!

Navigating Massachusetts State ACA Requirements – Form 1099-HC

For residents of Massachusetts, maintaining minimum essential health coverage is mandatory. This State filing requirement has been in place since 2006. 

Insurance providers, large businesses, and employers with self-insured coverage plans must file Form 1099-HC, Individual Mandate Massachusetts Health Care Coverage.  

This crucial form is essential for personal tax records. The filing deadline for Form 1099-HC with the State of Massachusetts is January 31, 2024  and electronic filing is a requirement. Recipient copies must also be distributed by the same date.

Navigating California State ACA Requirements – Forms 1095-B/1095-C

Similarly, residents of California are required to have minimum essential health coverage. Insurance providers, large businesses (ALE), and employers with self-insured coverage plans must file ACA Form 1095-B or Form 1095-C. While the e-filing deadline with the California Franchise Tax Board is April 1st, recipient copies must be distributed by January 31, 2024. 

How do Businesses Know if they are Required to File ACA Forms? 

Understanding if your business needs to file ACA Forms is crucial. Generally, if you’re an applicable large employer or a provider of minimum essential health coverage, you’re required to file. Let’s take a closer look:

Applicable Large Employer – This is an employer with 50 or more full-time equivalent employees or full-time equivalent employees. 

Businesses offering self-insured coverage – Some employers may choose to offer a self-insured health insurance coverage structure. This is essentially a structure where an employer handles all the administrative duties of the coverage plan. This includes enrolling applicable employees, collecting premiums, and paying out medical claims. 

Simplify Federal and State ACA Filing with TaxBandits

Filing ACA Forms, known for their length and complexity, can be a daunting task. TaxBandits offers a comprehensive e-filing solution supporting both ACA Forms 1095-B/1095-C and 1099-HC. Businesses, tax professionals, and insurance providers can streamline their filing process through TaxBandits, benefiting from features like built-in audits, bulk upload templates, and support for Form 1094-B/1094-C.

Key Features Include:

  • A built-in audit using IRS Business Rules
  • Bulk Upload templates for efficient data entry
  • Support for Form 1094-B/1094-C (transmittal forms)
  • State-only filing options
  • Corrections for 1095 Forms
  • Volume-based pricing and Prepaid Credits for cost-effectiveness

Ready to get started? Create your free TaxBandits account today to begin the 1095 filing process and meet your requirements for ACA reporting with the IRS and state!

Does your business need a full-service solution? Great news, our sister product, ACAwise. Their expert team manages every facet of ACA Form 1095 filing, ensuring accuracy by generating forms with the necessary codes and validations at each stage. They handle the entire process, from e-filing with the IRS and State to distributing copies on behalf of clients. Interested in more information, request a free quote here

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