Now that the holiday season has come and gone, it’s time for tax season. As an employer you have a lot of paperwork to remember, but you want to pay special attention to ACA reporting requirements. Missing a deadline or filing forms incorrectly could mean costly penalties. Here’s what you need to know.
Are you an ALE? Applicable Large Employers are those with 50 or more full-time employees, and they must offer Minimum Essential Coverage to at least 95 percent of employees and their dependents. That coverage must also meet IRS guidelines regarding affordability.
If you are an ALE, you must file Form 1095-C with the IRS each tax season. If you’ve chosen to file paper forms, you must do so by February 28.
Some ALEs, those with more than 250 employees, must file their forms electronically. A smaller business might also choose to file electronically rather than use paper forms. Those that file electronic Forms 1095-C must do so by March 31.
Finally, all ALEs must provide copies of Forms 1095-C to their employees by March 2.
If you’re not an ALE… You might have chosen to provide your employees with a healthcare plan, but you will use Form 1095-B to report that information to them and to the IRS. The deadlines listed above also apply to Forms 1095-B:
- By February 28 you must file paper forms with the IRS
- By March 31 you must file electronically with the IRS
- By March 2 you must provide the forms to your employees
If you have any questions about which Forms to file, or other requirements imposed by the IRS or the Affordable Care Act, please do contact us right away. With swift guidance we can help you understand these laws, get your forms filed and provided to employees correctly, and avoid any potential late fees or other penalties.