Yes, you read that right! California will require testing each year to transmit data through the Franchise Tax Board (FTB) File Exchange System if you need to participate in the Minimum Essential Coverage Information Reporting (MEC IR).
California MEC – ACA Requirements
If you are an employer of a CA resident, or if you provide MEC to a CA resident, including spouses and/or other dependents, then you must report ACA data to the IRS and California’s FTB.
The Perils of Doing-It-Yourself
We don’t recommend customers attempt to e-file on their own since:
- XML export files from outside vendors typically have some errors that are hard to find and fix.
- Rejections (if not handled properly) can leave your filing in limbo.
- Corrections require custom development, and most customers will require corrections.
- Having a 3rd party fix a filing after an unsuccessful self-filing is far more time consuming and costly. In some cases, it may not be possible for an outside party to fix your filing.
- The TCC/test scenario process must be re-completed every year (this year notwithstanding).
An Easier Way…
With BoomTax, the California MEC filing process is totally hands off. This means you won’t need to:
- Get a Transmitter Control Code (TCC)
- Pass testing
- Learn the complex corrections/rejections process
In fact, you won’t even need to contact the FTB! We are a FTB authorized transmitter and software developer, so we handle all of this for you.
How Does It Work?
The BoomTax e-filing process is designed to be as simple as possible.
- Simply upload your data on our secure file upload page.
- Review your imported data.
- Click ‘E-File’ on your filing.
Here you can opt in to California MEC filing. At this point, BoomTax will take over and will send your filing to the FTB and email you a receipt ID that you can keep as your proof of submission.
We have multiple import processes, including XML and excel, and a full fledged API that can add ACA capabilities to your backend systems.
CA FTB Test Scenario XML Sample File
To download the scenarios, you’ll want to first register or login to your BoomTax account. Creating an account is 100% free and takes less than 30 seconds.
After you’ve done this, you can download the test scenarios here:
CA FTB Technical Information
You can find all of the technical information regarding California MEC on the California FTB website.
Need More Information?
For more information on ACA state filing, please check in with your state or check out our other blog posts regarding this:
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.