In December 2017, Congress repealed the federal financial penalties for individuals not having health insurance. Since then, some states have turned to state individual mandates in order to keep their healthcare marketplaces stable. As new state individual mandates are enacted, the level of compliance and complexity for employers increases.

If an employer with 50+ employees has even a single employee filing taxes in one of these states, that employer may need to comply with the state’s individual mandate for reporting healthcare coverage information to the state, in addition to federal IRS filing requirements. Each state can have different reporting definitions, required file formats, filing deadlines and systems/IT infrastructure, making reporting compliance difficult to manage and keep track of.

*Vermont has an individual state mandate in place but currently no employer reporting requirements.