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For 2015, under the Affordable Care Act (ACA) applicable large employers (ALEs), as well as small employers that provide self-insured health coverage, will be required to file additional tax forms to provide information to the IRS and plan participants regarding their health care benefits. These additional tax forms need to be filed in early 2016.
The applicable forms consisting of 1095-C and 1095-B (including their transmittal Forms 1094-C and 1094-B, respectively) are now available with their instructions to begin preparations for required filings. To help employers identify what tax forms, if any, they are required to file and deliver to their employees due to the new ACA regulations, Doeren Mayhew has put together the below requirement chart:
Those employers required to file Form 1095-B, and its corresponding transmittal 1094-B, will need basic information, including:
Small employers are eligible to file electronically or on paper unless they have to file 250 or more 1095-B forms for the year, which requires electronic filing. The deadline for filing on paper for 2015 will be February 29, 2016 due to the 28th falling on a Sunday. This is also the case for providing forms to employees, 2015’s due date is shifted to February 1, 2016 due to January 31st falling on a Sunday.
Unlike smaller employers, ALEs will likely be inundated by the amount of information that needs to be gathered each year to meet new ACA reporting requirements. Whether the employer offers coverage or the employee enrolls in any coverage offered the information still must be reported using Form 1095-C and its corresponding transmittal, 1094-C.
A three-part form, 1095-C requires general employee and employer information (Part I), information related to months of coverage offerings (Part II) and information related to each individual plan participant’s coverage (Part III). Below are the specific requirements:
Keep in mind even ALEs exempt from the ACA’s shared-responsibility (or “play or pay”) provision for 2015 are still subject to the information reporting requirements in relation to their 2015 health care benefits.
ALEs can file electronically or on paper unless they have to file 250 or more 1095-C forms for the year, which requires electronic filing. The deadline for filing on paper for 2015 will be February 29, 2016 due to the 28th falling on a Sunday, but is extended until March 31st if filing electronically. Due to January 31st being a Sunday, ALEs must provide statements to employees by February 1, 2016 for the 2015 reporting year.
A 30 day extension can be granted to file Forms 1095-B and 1095-C, by filing application for extension, Form 8809, with the IRS on or before the due date. To obtain an additional 30 days to furnish statements to employees, employers must send a letter to the IRS postmarked by January 31st with the following information:
Failing to file or providing an incorrect return to the IRS or employees can become costly very quickly. For each incorrect or unfiled return a penalty of $50 – $250 can be imposed by the IRS, maxing out $3 million. This penalty can be doubled for each return not provided to an employee timely.
Wondering how you are going to comply with the ACA regulations? If you’re an ALE or even a smaller employer, Doeren Mayhew, along with our affiliate DM Payroll Services, can help in navigating the complex requirements to avoid penalties and ensure proper compliance.
Contact us for assistance today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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