ACA Reporting Forms – Get Prepared for Filing Deadlines
Posted on January 6th, 2016 Read time: 2 minutes
In February 2015, the IRS released forms employers subject to the Affordable Care Act (ACA) “shared responsibility” mandate must file to show compliance with ACA requirements. Learn about the complexities of filling out these forms and how Innovative Employee Solutions can help.
- Form 1095-B must be filed and given to enrollees
by employers subject to the “shared responsibility” mandate and self-insured employers not subject to the mandate.
- Form 1095-C must be filed by employers with 50
or more full-time or full-time equivalent (FTE) employees.
- Form 1094-B and Form 1094-C are transmittal forms employers use to submit 1095-Bs and 1095-Cs to the IRS.
Tracking & Reporting Employee Data
Companies with 100+ FTE employees had to start complying with ACA requirements in 2015. Companies with 50-99 FTE employees must begin complying in 2016.
Since compliance and reporting requirements cover many areas of business, having a team in place with a written work plan of human resources, payroll, finance, and other departments’ responsibilities is important. Technology should take much of the burden off employers by recording and reporting accurate data. A third-party payroll and benefits administration vendor such as Innovative Employee Solutions can efficiently handle these tasks.
Reporting Requirement for Midsize Employers
A midsize employer sponsoring a self-funded group health plan must comply with reporting requirements. If transitional relief is needed, Form 1094-C must be filed. Because compiling the information for the forms creates administrative burdens, an employer may want to outsource the work to a vendor like us.
Steps to Take
Because of the complexities of reporting requirements, employers should take the following actions:
- Learn reporting requirements and review reporting forms.
- Develop procedures to determine and document each employee’s full-time or part-time status by month.
- Develop procedures to document offers of health coverage and plan enrollment by month.
- Discuss reporting requirements with the health plan’s insurer/third-party administrator and payroll vendor to determine responsibility for data collection and form preparation. Innovative Employee Solutions can fulfill this role.
Four Steps Required Prior to ACA E-Filing
Forms 1094-B, 1095-B, 1094-C, and 1095-C must be mailed by February 29, 2016 or electronically filed by March 31, 2016. Any employers filing 250+ forms must do so electronically.
Social Security Numbers
An employer offering minimum essential coverage to employees, members, or participants must report each covered person’s name and Social Security number. If a plan sponsor makes a reasonable effort to find a person’s Social Security number and is unable to do so, the person’s birthdate may be used. Be aware penalties for incomplete or incorrect reporting may apply.
Applicable large employers, including those providing insured plans, self-funded plans, and those not providing minimum essential coverage must report names and Social Security numbers of all full-time employees. Dependents and spouses need not be reported.
Staying compliant with ACA reporting and filing to avoid steep penalties is a complex task. Contact the professionals at Innovative Employee Solutions for help with all your compliance needs today!
Related Articles
Posted on January 6th, 2016 Read time: 2 minutes
In February 2015, the IRS released forms employers subject to the Affordable Care Act (ACA) “shared responsibility” mandate must file to show compliance with ACA requirements. Learn about the complexities of filling out these forms and how Innovative Employee Solutions can help.
- Form 1095-B must be filed and given to enrollees
by employers subject to the “shared responsibility” mandate and self-insured employers not subject to the mandate.
- Form 1095-C must be filed by employers with 50
or more full-time or full-time equivalent (FTE) employees.
- Form 1094-B and Form 1094-C are transmittal forms employers use to submit 1095-Bs and 1095-Cs to the IRS.
Tracking & Reporting Employee Data
Companies with 100+ FTE employees had to start complying with ACA requirements in 2015. Companies with 50-99 FTE employees must begin complying in 2016.
Since compliance and reporting requirements cover many areas of business, having a team in place with a written work plan of human resources, payroll, finance, and other departments’ responsibilities is important. Technology should take much of the burden off employers by recording and reporting accurate data. A third-party payroll and benefits administration vendor such as Innovative Employee Solutions can efficiently handle these tasks.
Reporting Requirement for Midsize Employers
A midsize employer sponsoring a self-funded group health plan must comply with reporting requirements. If transitional relief is needed, Form 1094-C must be filed. Because compiling the information for the forms creates administrative burdens, an employer may want to outsource the work to a vendor like us.
Steps to Take
Because of the complexities of reporting requirements, employers should take the following actions:
- Learn reporting requirements and review reporting forms.
- Develop procedures to determine and document each employee’s full-time or part-time status by month.
- Develop procedures to document offers of health coverage and plan enrollment by month.
- Discuss reporting requirements with the health plan’s insurer/third-party administrator and payroll vendor to determine responsibility for data collection and form preparation. Innovative Employee Solutions can fulfill this role.
Four Steps Required Prior to ACA E-Filing
Forms 1094-B, 1095-B, 1094-C, and 1095-C must be mailed by February 29, 2016 or electronically filed by March 31, 2016. Any employers filing 250+ forms must do so electronically.
Social Security Numbers
An employer offering minimum essential coverage to employees, members, or participants must report each covered person’s name and Social Security number. If a plan sponsor makes a reasonable effort to find a person’s Social Security number and is unable to do so, the person’s birthdate may be used. Be aware penalties for incomplete or incorrect reporting may apply.
Applicable large employers, including those providing insured plans, self-funded plans, and those not providing minimum essential coverage must report names and Social Security numbers of all full-time employees. Dependents and spouses need not be reported.
Staying compliant with ACA reporting and filing to avoid steep penalties is a complex task. Contact the professionals at Innovative Employee Solutions for help with all your compliance needs today!
