ACA Reporting: What You Need to Know
Before the Deadline
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ACA Regulations
With the changes in IRS reporting regulations and the complexities of being non-compliant, many businesses have really felt the stress of being in accord with the Affordable Care Act. These new regulations and growing complexities have put pressure on employers and health benefits administrators to track time, payroll, and benefits data.
Companies tend to have data scattered amongst different sources, which can make it difficult to obtain necessary information for complying with the ACA mandate. This can also make it harder to understand what specifically they need for ACA compliance.
Employer Shared Responsibility
Under the new ACA regulations, companies with 50 or more full-time or full-time equivalent employees must offer health insurance to at least 95% of their employees. Employers are also responsible for reporting information to the IRS about the type of coverage offered to their employees.
Employer Shared Responsibility Payment
If employees aren't provided with the coverage required or the offered coverage is not affordable, the employer may face IRS penalties for not providing minimum essential coverage.
Express1095
expands all the necessary options for ACA Reporting
with the automated 1095 Reporting process
Minimum Value
The health coverage offered by employers must meet the ACA's minimum value standard. The minimum value standard requires at least 60% of the total cost of the health insurance offered must be covered by the employer.
Record Keeping
It's recommended that employers manage and retain complete documentation of all the data required to conduct accurate ACA reporting at the end of each year.
ACA Indicator Codes
In Form 1095-C, line 14 and line 16 play an important role for Affordable Care Act reporting under IRS section 6056. These ACA indicator codes for each line indicate the different scenarios applying to the offer of coverage made to the employee for the respective month(s). Employers are strongly advised to examine each code carefully before reporting to the IRS.
ACA Deadlines
Employers and other coverage providers are required to provide a copy of Form 1095 to the recipients of their coverage by January 31* the year following the year the coverage was offered. They're required to file Forms 1094 and 1095 with the IRS by February 28 if filing on paper forms and by April 1st if e-filing. Keep in mind that the IRS requires any returns containing over 250 forms must be e-filed. Additionally, if the original deadline falls on a weekend or federal holiday, the deadline is automatically extended to the next business day.
Note: IRS has now extended the recipient copy deadline to March 4, 2020 from the original due date of January 31.
How We Can Help You Meet Your ACA Reporting Requirements
It's our mission to help educate our clients on the ACA employer mandate, compliance management, and the ACA reporting process. Our reporting system continuously monitors ACA regulations and streamlines these updates with our easy-to-use reporting process.
Clients who are ready to begin the ACA reporting process can take a live, free demo with us or jump right in by signing up at ACAwise. And if you have any questions during the reporting process, our team of ACA experts is here to help you sort out any issues you may have meeting your ACA requirements.
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