The IRS mandates that employers subject to the Affordable Care Act (ACA) must file their reporting as well as provide copies to employees. Whether you’ve gone through ACA reporting before or completing it for the first time, it’s a good idea to familiarize yourself with everything you need to accomplish and by when.
What Does ACA Reporting Mean?
Under the guidelines of the ACA, employers are required to submit reports to the IRS as well as employees that outline the healthcare coverage your organization offered the previous year. By law, companies of a certain size must provide healthcare options for employees. The IRS mandates that ACA reporting be conducted to ensure these healthcare options have indeed been offered.
So, what organizations are required to submit ACA reporting? The general rule is that employers with 50 or more full-time or full-time equivalent employees must file with the IRS. This includes nonprofits and government agencies. Full-time is defined as any employee who works an average of 30 hours a week or more for at least 120 days in a given year.
Furthermore, regardless of company size, all self-insured employers are mandated to report their organization’s healthcare coverage to both the IRS and employees.
What Needs to be Filed and When?
There are two main forms your organization may need to file depending on how you go about insuring your employees. Form 1095-B is mostly used by insurance companies or those organizations that are self-insured. For companies with 50 or more employees who are not self-insured, you’ll use Form 1095-C.
ACA reporting is due to employees as well as the IRS by February 28, 2020 if you are not filing electronically. If you are filing electronically, the due date for ACA forms is March 31, 2020.
Join CTR for Our ACA Reporting iSolved Webinar
The holiday season certainly means a time for relaxation and celebration, but any human resources professional will tell you there’s little rest for the weary this time of year. With a seemingly endless amount of year-end tasks and responsibilities, it can be hard to keep everything straight. Join CTR for our next iSolved Webinar to learn more about the ins and outs of ACA reporting.