Employers: Take Note of These ACA Deadlines

Now that tax season is starting, employers face a number of deadlines. In particular, it’s important to know which forms you must file with the IRS, per ACA regulations, and how to do that correctly.

Reporting is based upon company size. 

Applicable Large Employers (ALEs) employ, on average, 50 or more full-time workers. Tax-exempt organizations, government entities, and any other organization employing 50 or more can qualify as an ALE. If you fall into this category, use Forms 1094-C and 1095-C to report health insurance status to the IRS. You must also distribute copies of 1095-C forms to each employee.

Businesses and organizations with fewer than 50 full-time employees are classified as non-ALEs. If you sponsor a self-funded healthcare plan, you must comply with IRC 6055 requirements. Use Forms 1094-B and 1095-B to report health insurance status to both the IRS and your employees. Your health insurance carrier will send you these forms.

Meeting the deadlines. 

First, your employees must be notified of their health insurance coverage status, viat Form 1095-B or 1095-C, by January 31. You can distribute these forms by mail, in person, or electronically if you have obtained consent.

If you file by paper, send in your forms to the IRS by February 28.

Those who must file 250 or more 1095-C forms must do so electronically, via the ACA Information Returns (AIR) system. You have until March 31 to complete this task.

Understanding all of the ins and outs of ACA compliance can be tricky. Call our office for more information on which forms to use, deadlines you must meet, and any other questions or concerns you might have.