Now that 2021 is wrapping up, it’s time to get ready for tax filing season. As an employer, you’re held to certain regulations regarding your group healthcare plan. Per the Affordable Care Act, you are required to file certain forms with the IRS and send notices to your employees.

However, the rules vary depending upon the size of your company.

Applicable Large Employers (ALEs) employ, on average, 50 or more full-time workers. Any type of employer with 50 or more full-time employees is counted as an ALE, including non-taxed organizations and government entities. Those who fall into this category must file Forms 1094-C and 1095-C with the IRS, and must also distribute 1095-C forms to each employee.

Smaller businesses with fewer than 50 full-time employees (non-ALEs) that participate in a self-funded group benefits plan must also report to the IRS using Form 1094-B. Form 1095-B should be distributed to employees. Your health insurance carrier will send you these forms.

The deadline for notifying employees of healthcare coverage is January 31, 2022. Send out your 1095-B or 1095-C forms by that date. You can mail them to employees, distribute in person, or transmit them by email if permission is requested and received.

Paper Forms 1094-B and 1094-C must be sent to the IRS by February 28.

If you use electronic filing via the ACA Information Returns system, which is required of employers submitting more than 250 forms, your deadline to do so is March 31.

If you need more assistance with understanding filing requirements, give us a call and our group health benefits specialists will be happy to help.