ACA Reporting
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Reminder: 1095-C tax forms are due by January 31st. Time is ticking...are you prepared for the ACA reporting requirements?
Under the Patient Protection and Affordable Care Act (ACA), individuals are required to have health insurance while applicable large employers (ALEs) are required to offer health benefits to their full-time employees. In order for the Internal Revenue Service (IRS) to verify that (1) individuals have the required minimum essential coverage, (2) individuals who request premium tax credits are entitled to them, and (3) ALEs are meeting their shared responsibility (play or pay) obligations, employers with 50 or more full-time or full-time equivalent employees and insurers will be required to report on the health coverage they offer. Reporting will first be due early in 2016, based on coverage in 2015. Mid-size employers (those with 50 to 99 employees) will report in 2016, despite being in a period of transition relief in regard to having to offer coverage. The reporting requirements are in Sections 6055 and 6056 of the ACA.
1095-C: Provide to each full-time employee regardless of eligibility status and whether or not coverage was accepted.
1094-C: An aggregate of all the 1095-C’s that were issued to employees.
Key Dates to Remember:
January 2016 All full-time employees must receive their 1095-C
February 2016 1094-C forms being submitted by mail are due
March 2016 1094-C forms being submitted electronically are due. If more than 250 1095-C’s are issued the 194-C must be filed electronically
Penalties:
The IRS released instructions that incorporate new penalties for failing to file information returns, which are now $250 for each 1095-C that an employer fails to file. The IRS again noted that, for 2015 reporting, penalties will not be imposed for filing incorrect or incomplete information so long as the employer can show it made a good faith effort to comply with the requirements. The "grace period" does not apply to employers who fail to file or who file late.
Solution:
Meeting this obligation is a daunting task for many employers. The data you need resides in several places and the reports are complex to complete. Most employers are looking for a practical method of collecting this information without soaking up resources. We offer clients an easy way to generate the required reporting without the hassle and expense found with other systems.
If your company has yet to make a decision about how to manage this reporting requirement, we’ve got a solution for you. Contact Dan Maniaci to learn more about the CIOMA Employee Benefits Program and our ACA compliance solutions.
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