What better way to kick off 2019 than with a quick review of your Affordable Care Act (ACA) reporting requirements? Employers subject to the ACA must distribute reporting forms to employees and file with the IRS shortly after the new year, so now is the time to gather and review all required data.
ACA REPORTING FORMS
Thankfully, the IRS has published these final forms and instructions to help employers prepare for the reporting process:
- Form 1095-B, Health Coverage.
- Transmittal Form 1094-B to accompany Form 1095-B.
- Instructions for Forms 1094-B and 1095-B.
- Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
- Transmittal Form 1094-C to accompany Form 1095-C.
- Instructions for Forms 1094-C and 1095-C.
IMPORTANT FILING DEADLINES
- 1095 forms must be delivered to employees by January 31, 2019.
- Paper filing with the IRS must be completed by February 28, 2019.
- Electronic filing with the IRS must be completed by April 1, 2019. Employers who file 250 or more information returns must file electronically.
On Form 1095-C, applicable large employers (ALEs)—those with an average of 50+ full-time employees or part-time equivalents during the previous calendar year—demonstrate compliance with ACA's employer shared-responsibility mandate. Form 1095-C requires ALEs to report whether they offered eligible employees affordable health coverage that meets the minimum coverage and value threshold standards established by the ACA. ALEs not in compliance with the coverage provisions are subject to ACA employer penalties. For more information regarding reporting on Form 1094-C and Form 1095-C, please refer to IRS Q&A.
Small employers who have less than 50 full-time employees are exempt from most ACA reporting requirements. However, self-insured small employers must complete and file Forms 1094-B (the transmittal form) and 1095-B with the IRS and provide full-time employees with a copy of Form 1095-B. Small employers who are members of a controlled or affiliated service group that (collectively) has at least 50 full-time employees are also required to file Forms 1094-C and 1095-C.
WHAT'S NEXT FOR THE ACA?
Despite a recent ruling from a federal judge in Texas declaring the Affordable Care Act (ACA) unconstitutional, all ACA coverage and reporting obligations for employers currently remain in place. Considering the controversial nature of the ACA, the judge’s ruling will likely be appealed and end up before the Supreme Court. In the meantime, the Department of Health and Human Services has issued a statement announcing that it will "continue administering and enforcing all aspects of the ACA as it had before the court issued its decision." In light of this announcement, employers who are subject to the ACA should prepare to distribute and file the necessary forms in the new year.
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