January 2026
Diana Craig, Director, Benefits Compliance
Beginning in 2020, California residents and their qualifying dependents were required to maintain “Minimum Essential Coverage” during each month of the calendar year or pay a penalty with their state income tax return. This state individual mandate also created additional insurer and employer reporting and disclosure obligations.
Employers of any size sponsoring self-funded plans covering California residents are required to furnish Statements 1095-C to enrolled individuals, generally by January 31 of the following year, and then must file those forms and statements with the Franchise Tax Board (“FTB”) by March 31. Although March 31 is the deadline to file Forms 1095-C and the accompanying Form 1094-C transmittal with the FTB, employers have an automatic extension through May 31 to file. After that date, the FTB may assess a penalty of $50 per covered individual. Note that for insured group health plans, the insurance issuer must furnish Forms 1095-B to covered California residents and then must file those forms with the FTB. Publication 3895C contains additional details, along with detailed instructions about how to file the forms.
If employers sponsoring self-funded plans covering California residents are unable to furnish Statements 1095-C to enrolled individuals by January 31, they should plan to furnish those statements as soon as possible. The FTB has repeatedly affirmed that they will not impose penalties if the forms are furnished later than this date. This flexibility was initially designed to accommodate federal extensions to furnish Forms 1095-C (as required under the ACA), generally, to March 3rd. Nonetheless, 1095-C Statements should be furnished to covered individuals before filing with the FTB.
Employer Action Items
- Communicate with reporting vendors. Employer plan sponsors of self-funded plans covering California residents should connect with ACA reporting vendors regarding the FTB filing (and furnishing of Forms 1095-C to their California residents).
- Plan to meet the required state filing deadline. Employer plan sponsors of self-funded plans should prepare to file Forms 1095-C (along with the required Form 1094-C transmittal) with the FTB no later than by March 31, or if necessary, no later than by May 31.
- Stay informed. Monitor FTB statements and publications to understand and implement any additional flexibilities related to employer reporting and disclosure obligations.
Additional Information and Resources
For more information
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