It’s that time of year again. As you get ready to file your business income taxes, make sure you’re complying with current ACA requirements for reporting the status of health insurance coverage. You must report this status to both the IRS and your employees, so that they can correctly file their own taxes. The type of forms you need, as well as certain deadlines, depend upon the size of your business. The following information explains these regulations in more detail.
If you employ 50 or more full-time employees, on average… You are classed as an Applicable Large Employer (ALE). This status applies whether you’re a traditional company, a non-profit organization, or a government entity. ALEs must file Forms 1094-C and 1095-C with the IRS, and must distribute a copy of each 1095-C to the applicable employee.
If you employ fewer than 50 full-time employees and sponsor a self-funded healthcare plan… You are classed as a non-ALE, and must file Forms 1094-B and 1095-B in compliance with IRC 6055 requirements. These forms will be sent to you by your health insurance provider.
As for deadlines… Filing the correct forms with both the IRS and your employees is just the first step. You must also pay attention to the following deadlines.
January 31. All employees must be notificed of their health insurance status for 2021, via Forms 1095-B or 1095-C, by this date. You may deliver these forms at the office, by regular mail, or via electronic means (email) if you have reqeusted and received permission to do so.
February 28. If you file paper forms with the IRS, you must complete this step by February 28. However, not all employers can file by paper (see below).
March 31. ALEs with 250 or more employees must file their Forms 1095-C electronically, via the ACA Information Returns (AIR) system. You have until March 31 to complete this step.
Keeping track of which forms you must file, with whom and by what date, can get confusing. Rather than risk a violation of regulations, make sure to stay in touch with us about your own requirements. We can help you determine which forms you must file, how to file them, and when you need to complete these steps.