As an individual, you are subject to the rules of the Affordable Care Act with regard to minimum essential healthcare coverage. For those of you covered under an employee-sponsored healthcare plan, it is important to understand notice deadlines so that you can begin gathering your documents for tax season.
How large is your employer?
If you work for an Applicable Large Employer (ALE) which employs 50 or more full-time employees on average, you should receive a Form 1095-C from that organization. Government entities and tax-exempt organizations must also comply with this requirement.
If you work for a non-ALE, or small business that provides a self-funded healthcare plan, they must distribute to you a copy of Form 1095-B. This notice will provide you with proof of your minimum essential coverage.
Those who are not covered by an employer- sponsored plan will receive a 1095 form directly from their insurance carrier.
What are the deadlines?
Whether you’re subject to Form 1095-B or 1095-C, your employer is required to send the form to you by January 31, 2022. They can mail you the form, offer it to you in person, or transmit it electronically (via email) if consent has been requested and obtained.
You will need this information in order to file your individual income tax return and provide proof of healthcare coverage. While the federal individual mandate penalty is currently set at 0 dollars, the state of California does impose its own mandate and penalty regarding healthcare coverage. You will be required to provide this information on both your federal and state income tax returns.
Remember, the tax filing deadline is April 15, 2022. If you do not receive your form, or have questions about these requirements, give us a call and we’ll be happy to help.