UPDATED 11/18/20: The D.C. Office of Tax and Revenue (OTR) has confirmed that all self-insured employers must submit reporting to the state, regardless of their Applicable Large Employer status. The D.C. OTR has also confirmed that there are no penalties for employers who fail to submit reporting. D.C. Individual Mandate reporting will be due 30 days after the IRS deadline for submitting ACA reporting. For calendar year 2020, reporting will be due April 30, 2021.
The Washington, D.C. Individual Mandate (“D.C. Mandate”) requires certain employers who provided healthcare to D.C. residents in 2019 to:
- Submit their Affordable Care Act (ACA) reporting (IRS Forms 1095-B and 1095-C) to the D.C. Office of Tax and Revenue (OTR) by June 30, 2020; and
- Distribute Forms 1095-C to D.C. residents.
See below for frequently asked questions surrounding the D.C. Individual Mandate:
Employer Reporting Obligations
Which employers are subject to D.C. Mandate reporting?
Employers who were “Applicable Large Employers” in 2019 and who are required to submit Affordable Care Act (ACA) reporting must also submit D.C. Mandate reporting if they provided healthcare coverage to a D.C. resident in 2019.
Do employers who were not ALEs in 2019 need to submit reporting?
No, employers who are not required to submit ACA reporting for the 2019 calendar year are not required to submit D.C. Individual Mandate reporting.
Are employers required to submit reporting if their carrier submits similar reporting?
Yes, employers have a separate obligation to submit D.C. Mandate reporting. This means that employers must submit reporting even if their carrier also submits reporting.
For which employees are employers required to submit reporting? Who is considered to be a D.C. resident?
Employers must submit reporting for employees for whom wages were withheld and paid to D.C. in 2019. If an employer did not pay any D.C. taxes for their employees, they are not required to report. Employers who are unsure of whether they had employees who were D.C. residents (for whom they withheld D.C. taxes) should consult with their payroll adviser.
What forms do employers need to submit? Do employers need to submit forms for only the D.C. residents?
Employers must submit the same forms that they file with the IRS for their ACA reporting, which includes the following forms:
- Form 1094-C: Transmittal of Health Coverage Information Returns
- Form 1095-C: Employer-Provided Health Insurance Offer and Coverage: Individualized form for each employee for whom the employee is required to report
Employers have the option of submitting either:
- A copy of their entire ACA reporting, which may include individuals who are not D.C. residents (OTR has confirmed that they will keep this information confidential); or
- A copy of their Form 1094-C and Forms 1095-C only for their D.C. residents.
Where do employers submit the reporting?
Employers must upload the reporting (copies of their ACA reporting) through MyTax.DC.gov using OTR’s prescribed layouts and formats. Employers are not allowed to submit their reporting through other web services or in a paper format.
How do employers submit their reporting?
Employers will use their MyTax.DC.gov credentials to submit the returns. Employers should already have a MyTax.DC.gov login and no additional sign up is required.
If an employer does not have a MyTax.DC.gov login, then they should reassess whether they are required to report. Only employers who withheld wages and paid taxes to D.C. on behalf of employees are required to report. Therefore, employers should already have a MyTax.DC.gov login when they submitted these taxes.
When is the deadline to submit the reporting to OTR?
The deadline to submit the returns to OTR for the 2019 reporting is June 30, 2020. For subsequent years, the reporting will be due 30 days after the IRS deadline for submitting ACA reporting (including any extensions that the IRS grants).
Employer Distribution Obligations
Do employers need to distribute IRS 1095-C forms to D.C. residents if they have already done so as a part of their ACA reporting?
No. Employers, or their ACA reporting vendor, should have already distributed 1095-C forms to their D.C. residents when they distributed these forms to all plan participants pursuant to their obligation under the ACA. Employers do not need to send an additional 1095-C form to D.C. residents.
What is the deadline to distribute IRS 1095-C forms to D.C. residents?
For the 2019 reporting (which is due in 2020), the deadline to distribute 1095 forms was March 2, 2020. Employers should have already done this pursuant to the ACA Reporting form distribution deadline. For subsequent years, the deadline to distribute 1095 forms will be January 31st following the end of the calendar year unless the OTR issues a notice of deadline extension.
Additional Resources
- MyTax.DC.gov
- Official D.C. Mandate Updated Guidance (March 31, 2020)
- Official D.C. Mandate Reporting FAQ
- D.C. Mandate Reporting Statute
- Sequoia Blog: Employer Reporting Requirements under the D.C. Individual Mandate
The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.
