As a reminder, if a self-insured employer employs at least one employee who resides primarily in California, the employer is subject to file copies of federal Forms 1094/1095-C with the California Franchise Tax Board annually. The current 2022 tax year’s filing is due on March 31, 2023. However, no penalty will apply if the filing is done on or before May 31, 2023, according to the state site.
For fully insured plans, the plans’ medical insurers are responsible for filing Form(s) 1095-B on behalf of the employers.
The main objective of this state reporting is for the state to enforce its Individual Mandate requirement by verifying that each resident had health coverage in the prior year. Failure to report can result in a $50 per person penalty.
Affected employers should be aware of these developments.
CA Site » California Instructions for Filing Federal Forms 1094-C and 1095-C » California Instructions for Filing Federal Forms 1094-B and 1095-B »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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