Under the Affordable Care Act (ACA), there was originally something called an Individual Mandate. This required that taxpayers provide proof annually that they are enrolled in health insurance coverage that meets the ACA affordability requirements. Any taxpayers who failed to do so would face a penalty fee.
The federal government removed this requirement several years ago. However, many states have chosen to put in place their own state-specific mandates. One of these states is Rhode Island.
If you employ workers in this state or your business is located in Rhode Island, here are some important updates for state filing deadlines that you should be aware of.
What are the Rhode Island ACA Reporting Requirements?
The state of Rhode Island signed its individual mandate into law on July 5, 2019. This went into effect for the tax year 2020. Taxpayers residing in Rhode Island are required to provide proof that they are enrolled in affordable health insurance coverage or face a penalty of $695 for adults and $347.50 for their children.
So, how does Rhode Island verify this proof? This is where the ACA requirements for employers come into play. Employers are required to file ACA Forms 1095-B/C with Rhode Island to provide health coverage information for each applicable employee.
The Rhode Island Department of Revenue, Division of Taxation released an official notice on October 19, 2022. This notice announced the following updates:
The deadline for filing forms with the state is now March 31, 2023.
The deadline for furnishing recipient copies is now March 2, 2023.
These are both permanent changes and will be put in place for 2022 reporting and continue for the foreseeable future.
What are the Previous ACA Deadlines for Rhode Island?
Previously, the employers were required to file ACA Forms with the state of Rhode Island by January 31, 2022, and furnish their recipient copies by this date as well.
Why did the State of Rhode Island Change the Deadlines?
According to the official notice from the Division of Taxation, the reasoning for making the change is so that the state deadlines match up with the federal ACA reporting deadlines from the IRS.
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