10 ACA Reporting Reminders and Tips

  1. Small employers with insured health plans do not have to provide reports to their employees or to the IRS.
  2. Employers with 50 or more full-time and full-time equivalent employees must report for this year. Transition relief does not apply for reporting purposes.
  3. Employers who will file 250 or more information returns must do so electronically using the AIR system. https://www.irs.gov/for-Tax-Pros/Software-Developers/Information-Returns/Affordable-Care-Act-Information-Return-AIR-Program
  4. Employers who are ALEs will report offers of coverage made to all full-time employees whether the employees enrolled in coverage, waived coverage or are in a waiting period.
  5. Form 1094-C provides information that helps the IRS determine whether an employer may be subject to the 4980H(a) penalty (the “no offer” penalty). Form 1095-C, particularly lines 14-16, helps the IRS determine whether an employer may be subject to the 4980H(b) penalty which may be assessed if a plan does not meet minimum value and/or affordability.
  6. Employers who are part of a controlled or affiliated group are each responsible for reporting on their own employees. These employers are not liable for reporting of any other entity in the controlled group although they will list other entities in the controlled group on the1094-C form, Part IV.
  7. Employers subject to the reporting requirements are required to furnish the 1095-C statements to each full-time employee by January 31 of the year following the calendar year for which reporting relates. Since January 31, 2016 is on a Sunday, the statements are due by February 1, 2016. As a late Christmas gift, the IRS issued Notice 2016-4 on December 28, 2015 extending the filing deadline to March 31, 2016.
  8. Information returns must be filed with the IRS by February 28, 2016 if filed by hard-copy; March 31, 2016 if filed electronically. As a late Christmas gift, the IRS issued Notice 2016-4 on December 28, 2015 extending the filing deadline to May 31, 2016 if filing by paper and June 30, 2016 if filing electronically.
  9. Self-insured employers – whether large or small – are subject to the reporting requirements that would otherwise apply to insurers (detailed in Section 6055).
  10. A “good faith compliance” effort is required by employers to avoid non-compliance penalties which, if assessed, can be sizeable.