2018 is off to a start and the next big question many employers are facing is: Should we adhere to the Affordable Care Act (ACA) reporting requirements, or go under the assumption that the law will be repealed and no longer enforced?
The short and simple answer is- yes, you need to comply with the ACA. The ACA is an effective law and employers that fail to comply with the reporting requirements are subject to consequences, penalties, and fines.
Who has to File?
Applicable Large Employers (ALE) must report on the health care coverage offered to full-time employees to the IRS. An ALE is an employer that employs an average of at least 50 full-time employees on business days during the preceding calendar year.[i] You can click here for additional information on the classification of an ALE.
In addition to ALEs, all self-insured organizations will also need to file an annual return with the IRS. Self-insured organizations may click here for further details.
What Forms Need to be Filed?
In October of 2017, the IRS published final forms and instructions to help employers prepare for the ACA. The following forms are to be filed with the IRS, along with the latest instructions:
- Form 1095-B- Health Coverage
- Form 1094-B- Transmittal of Health Coverage Information Returns
- Form 1095-C- Employer-Provided Health Insurance Offer and Coverage
- Form 1094-C- Transmittal of Employer-Provided Health Insurance Offer & Coverage Information Returns
- Instructions for Forms 1094-B and 1095-B.
- Instructions for Forms 1094-C and 1095-C
When are the Filings Due?
On December 22, 2017, the IRS extended the date to provide Forms 1095-B or 1095-C. The new deadlines are as follows:
- February 28, 2018- IRS deadline for paper filing
- March 2, 2018- Employers must mail or distribute forms to employees
- April 2, 2018- IRS e-filing deadline
It’s important to note that an employer filing 250 or more information returns during the calendar year, must file these returns electronically. For employers with fewer than 250 returns, electronic filing is optional.[ii]
Regardless of the uncertainty surrounding the ACA, it’s critical for organizations to comply with the requirements to ensure they fulfill their 2017 obligations and avoid any repercussions.
This blog was written by Ally Edwards, Marketing Guru at PeopleGuru. This post may not be copied or published without PeopleGuru's express written permission.
[i] “Determining If an Employer Is an Applicable Large Employer.” Internal Revenue Service, 22 Nov. 2017, www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer.
[ii] “Topic No. 752 Filing Forms W-2 and W-3.” Internal Revenue Service, 4 Jan. 2018, www.irs.gov/taxtopics/tc752.