Back in 2017 when the Republican Congress passed the Tax Cuts and Jobs Act, one of the “tax” cuts was the Affordable Care Act’s individual mandate. It’s important to note that the mandate itself was not eliminated, but rather the penalty on individuals to not carry health insurance was reduced to zero, effectively eliminating the “tax” penalty.

Several states have subsequently passed local regulations that effectively reinstate a state-based penalty for individuals who do not carry health insurance throughout the year. And just like the federal government required employers to report on employee coverage to enforce the ACA’s individual mandate, these states are too.

As of February 2020, here is a list of states with additional ACA reporting requirements for the 2019 tax year:


Note that these reporting requirements are in addition an employer’s normal reporting requirements under the ACA to the IRS. Employers with fully-insured plans should consult with their carriers to verify whether the carrier will assist the employer in complying with these reporting requirements. Assurance will continue to monitor the reporting situation as other states adopt similar rules in the future. If you have any questions regarding these additional reporting requirements, please reach out to your Assurance representative.

Information contained herein is not intended to constitute tax or legal advice and should not be used for purposes of evading or avoiding otherwise applicable regulatory responsibilities as issued by the federal or state government(s) and/or taxes owed under the Internal Revenue Code. You are encouraged to seek advice from your legal or tax advisor based on your circumstances.