As of January 1, 2020 Rhode Island, requires all residents of the state to be enrolled in qualifying health coverage. Failure of an individual to maintain coverage will result in a penalty unless the individual has qualified for an exemption. One of the components of the Rhode Island Health Coverage Mandate is third-party reporting to verify whether applicable Rhode Island residents maintain minimum essential coverage (MEC).
Certain employers that offer employer-sponsored health coverage and other entities that provide health coverage are required to file minimum essential coverage (MEC) information to the Rhode Island Division of Taxation. Employers of Rhode Island residents can use the same federal forms 1094 and 1095 filed with the IRS to transmit MEC coverage information to the state of Rhode Island.
Out-of-State employers that employ Rhode Island residents have the same filing requirements as In-State businesses.
The state will accept the IRS ACA AIRS reporting format and will provide portal access on the Division of Taxation website to file the returns at a future date. For tax year 2020 only the filing deadline is March 31, 2021. In future years the filing deadline will be January 31.
Paylocity will provide third-party reporting provider in the Rhode Island Health Coverage Reporting Program for our ALE clients utilizing ACA Enhanced and Essentials if the company has one or more employees that had a home address in Rhode Island for all or part of the 2020 calendar year. This includes:
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.