Ensuring compliance with the Affordable Care Act (ACA) is a crucial responsibility for Applicable Large Employers (ALEs) and Self-insured employers, and proper information reporting plays a pivotal role in meeting these obligations. An important reporting deadline approaches on January 31, so take notice right now and start preparing the correct forms.
Who is an ALE? A business with 50 or more full-time employees qualifies as an Applicable Large Employer (ALE) and must complete the steps outlined below. As an ALE, understanding your reporting responsibilities is essential for avoiding penalties and maintaining compliance with the ACA. Smaller businesses are not subject to the same reporting requirements, but might face slightly different requirements if they are self-insured (see more below).
The first key component is Form 1095-C, which ALEs must use to report information about offers of health coverage and the coverage provided to each employee. This form aids in determining an individual’s eligibility for the Premium Tax Credit on their personal tax return. Employers must furnish copies of Form 1095-C to employees and file them, along with a transmittal form (Form 1094-C), with the IRS.
Self-insured employers must also complete certain requirements: Non-ALEs that sponsor self-insured group health plans must report information about covered employees and their dependents to the employees, despite not being subject to the employer shared responsibility provisions or the information reporting requirements for ALEs. To meet this obligation, non-ALEs should employ Form 1095-B, Health Coverage, and its corresponding transmittal form, Form 1094-B, Transmittal of Health Coverage Information Returns. These forms facilitate the information reporting requirements for providers of minimum essential coverage, ensuring compliance with regulatory standards.
Navigating the complexities of ACA information reporting requires careful attention to detail and adherence to specific timelines. ALEs should stay informed about updates and changes to reporting requirements to ensure accurate and timely submissions.
Understanding and fulfilling ACA information reporting requirements is a vital aspect of compliance for applicable large employers. Call us promptly if you have any questions. We help ALEs navigate the intricacies of information reporting, ultimately ensuring the smooth operation of your business while meeting your regulatory obligations. But hurry: As we mentioned, your reporting deadline approaches on January 31. Let’s get started today, so that you don’t face a rush to complete your requirements.