ACA’s Individual Mandate is Dissolved; New Reporting Deadlines

Starting this month, individuals without health coverage will not have to pay a tax penalty for 2019.  However, if you live in Massachusetts, New Jersey, the District of Columbia and starting in 2020, Vermont; then, you will be subject to these states’ individual mandate laws.  (And as a heads-up: several other states are actively considering similar legislation.  We’ll keep you posted on who jumps on this bandwagon…)  An important note – if an individual failed to carry health coverage in 2018, he/she will likely have to pay a tax penalty this tax filing season.

And a bit of good news regarding the ACA’s reporting requirements:

  • The Internal Revenue Service extended the 2019 deadlines by 30 days for employers to furnish Forms 1095-B and 1095-C.
  • Employers with 50 or more full time employees (including full-time equivalent employees) generally must furnish a Form 1095-C to all full-time employees no later than March 4, 2019
  • Self-insured employers with fewer than 50 or more full-time employees (including FTE’s) generally must furnish a Form 1095-B to all responsible individuals, no later than March 4, 2019

The deadline for employers to file all Forms 1094 and 1095 with the IRS remains February 28, 2019 (or if the organization is filing electronically, then it’s April 1, 2019.)