The Affordable Care Act (ACA) reporting deadline for Form 1094-C and 1095-C electronic filing is Thursday, June 30, 2016.
While traditionally ALEs would be able to request an extension by submitting Form 8809 on or before the due date of the return for an automatic extension, the IRS has declared the reporting deadline extension will serve as an automatic extension for all employers and no one may request an additional extension beyond June 30, 2016.
The Reporting Deadline to File Form 1094-C for the 2015 Calendar Year
For reporting on the 2015 calendar year, employers must file Form 1094-C and 1095-C electronically by Thursday, June 30, 2016.
These dates are a result of the IRS extension given at the end of 2015. (The deadline for filing by paper for 2015 has already passed.)
In the future, filing for the previous calendar year will be due on February 28 (paper filing) and March 31 (electronic filing) unless the date falls on a weekend (Saturday or Sunday) or a legal holiday.
If a due date falls on one of the aforementioned days, the due date defers to the following business day. A business day, according to the IRS, is any day that is not a Saturday, Sunday, or legal holiday.
Penalties for failure to file complete and accurate forms by the form due date will be $250 per form, not to exceed $3 million.
You can learn more of the details in the government's Form 1094-c instructions.
Do You Need to File Form 1094-C for 2015?
Applicable Large Employers (ALE) with 50+ full-time and full-time equivalent employees in the previous year must file one or more Forms 1094-C and a Form 1095-C for each employee who was a full-time employee for any month of the calendar year.
Keep in mind that while many ALEs with fewer than 100 full-time equivalent employees are generally eligible for transition relief, they are still required to file Forms 1094-C and 1095-C for the calendar year 2015 and subject to penalties for failure to file forms.
Regardless of the the method your company uses to qualify full-time employees, the ACA’s standards apply to all employers.
The penalty for failure to file a Form 1095-C is generally $260 per employee. The total penalty for a calendar year cannot exceed $3,178,500.
What is the Affordable Care Act?
The Patient Protection and Affordable Care Act (PPACA), or simply the Affordable Care Act (ACA), is the new healthcare reform law. The Affordable Care Act represents the most profound regulatory change to the federal healthcare system in the United States since Medicaid and Medicare.
The Affordable Care Act was signed into law by President Obama on March 23rd of 2010. In fact, the Patient Protection and Affordable Care Act (HR3590) is comprised of the Patient Protection Act and Affordable Health Care for America Act.
Parts of the Affordable Care Act also draw from the healthcare-related sections of the Student Aid and Fiscal Responsibility Act and the Health Care and Education Reconciliation Act. In addition, the Affordable Care Act entails smaller amendments to the Food, Drug and Cosmetics Act as well as the Health and Public Services Act.
Reporting Requirements and Forms
Companies must complete IRS Form 1094-B, Transmittal of Health Coverage Information Returns, and Form 1095-B, Health Coverage. Form 1095-B contains the requisite information, including the filer’s identifying data, names of insurance issuers and a listing of individuals covered.
Any business submitting 250 or more returns is required to file electronically.
Additionally, as of February 1, 2016, the law required businesses to supply employees with a hard copy of this information. Employees can give employers permission to provide the forms electronically.
Noncompliance can result in penalties for each return failure, not to exceed $1.5 million per year for each. Fines are also applied for failure to disseminate individual payee statements.
Employers and HR Professionals Have Help for Navigating the ACA Requirements
An updated and streamlined reporting strategy will help your organization meet its obligations, while providing accuracy and timeliness. So take time to understand the law and prioritize accurate record keeping. In this way, you will make compliance a sure thing.
Another key step in maintaining HR compliance and increasing your company's cost-effectiveness is to consider outsourcing. A professional agency such a Accuchex can provide much-needed help with Human Resources needs and questions. Accuchex is a full spectrum Payroll Management Services provider offering expertise in Time Management, Insurance and Retirement issues, as well.