ACA Software Streamlines Data Management
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it useful.
Effective data management is crucial when managing workplace regulatory compliance, one of the more complex tasks being ACA compliance management for ALEs.
If you are tasked with managing ACA compliance for your company, you already know that data tracking and management can be cumbersome. ACA compliance has become even more complex as several states now require state level ACA filing.
Comprehensive ACA software can streamline data management to help ease the burden of compliance. If you are manually tracking or underwhelmed by your current ACA solution, we can help.
Our affordable IRS-certified ACA software can help you easily manage ACA-related data year-round to help ensure accurate data tracking.
State Individual Mandates
Several states now require state level ACA filing and forms furnishing due to their Individual Mandates.
Individual Mandates require state residents to purchase qualifying coverage (or pay a penalty) unless they qualify for an exemption. Employers in several states are also tasked with ACA state reporting requirements.
Employers required to file/furnish forms at the state level must do so by the required deadlines or face possible penalties.
Manual tracking can be prone to errors, and accurate data management is crucial for compliance. Comprehensive ACA software can help you streamline ACA-related data management year-round to help ensure accurate reporting.
Here is a synopsis of the state reporting requirements released so far, but make sure to check with your current/updated state regulations to ensure you are in full compliance, as state filing and forms furnishing deadlines vary.
State Level Filing
Self-Insured California ALEs providing Minimum Essential Coverage to residents must file with the state to show that their employees (state residents) received qualified coverage throughout the year.
California ACA state filing is done through California’s Franchise Tax Board, and state filing is required for both in and out-of-state companies employing California residents.
The California Franchise Tax Board states, “Insurance providers are required to report health coverage information to us annually by March 31 or face a penalty. However, no penalty will apply if the return is filed on or before May 31. Employers are similarly required to report insurance information to us by March 31, but only if their insurance providers do not report to FTB. This requirement comes from the Individual Shared Responsibility Penalty that was enacted at the same time as the health care mandate. The penalty for not reporting is $50 per individual who was provided health coverage.”
When the insurer for a non-self-insured company files an information return with the FTB the company offering coverage is not required to report to the FTB.
If an ALE furnishes a federal Form 1095-C to an individual, it does not need to provide an additional copy for ACA purposes.
In Massachusetts reporting requirements are usually satisfied by insurance carriers, not employers.
Most insurance carriers will submit forms MA 1099-HC on behalf of ALEs to report minimum essential coverage to the state and furnish to employees. If not, employers are responsible for doing so.
Self-insured companies must submit Form MA 1099-HC to the state and furnish copies to their employees.
ALEs are also required to file the Health Insurance Responsibility Disclosure (HIRD) form with the state Department of Labor.
Washington D.C. requires ALEs that provide Minimum Essential Coverage to an employee to file with the Office of Tax and Revenue. Filing data must include the employee’s coverage type.
Rhode Island ALEs must file with the Rhode Island Division of Taxation.
New Jersey ALEs are required to file 1094/5-Cs and 1094/5-with the state.
State level filing obligations add to the complexities of ACA filing, and failure to file correctly when required by the state may result in penalties.
Again, make sure to check with your current/updated state regulations to ensure you are up to date on state filing and forms furnishing requirements.
Our IRS-certified ACA software is easy-to-use and streamlines ACA-related data management to help ease the burden of compliance.