If you’re an employer subject to the Affordable Care Act’s (ACA) reporting requirements, you have a few tasks to complete. And, it’s essential that you complete these tasks accurately and completely. To help you navigate these new reporting requirements, we outline some of the major steps you’ll need to take to comply - and share many time saving resources! We actually follow these same processes and best practices for our ACA reporting clients at Clarity.
Step 1: Determine if You’re Subject to ACA Reporting Requirements
By now you probably already know whether or not you’re subject to ACA reporting requirements. The size and structure of your company determine what you’re subject to regarding ACA reporting. The IRS Affordable Care Act for Employers page will help you determine the size of your company for reporting purposes. However, it’s important to realize that even small companies with less than 50 full-time employees are subject to certain reporting requirements. So, be sure to carefully sort through reporting requirements when deciding what you need to do. The Q&A on Reporting page on the IRS website will help you sort through what you’ll likely be required to report.
If you’re subject to reporting requirements, the next step is to get ready for them.
Step 2: Gather the Necessary Paperwork Early
Forms You Need to Fill Out: The What and Where
Finalized versions of the forms you’ll need to submit were released this past October. If you downloaded the draft version of these forms that were made available in September, go back to the IRS website and download the final versions of each form. You will probably not be able to rely on the good faith efforts standard as a protection against submitting inaccurate information this year. So, make every effort to use the finalized forms and be accurate in your reporting.
To save you time, we have provided links to each form’s final version:
1095-B Health Coverage
1094-B Transmittal of Health Coverage Information Returns
1095-C Employer-Provided Health Insurance Offer and Coverage
1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
We’ve also included links to the instructions for each of these forms:
Instructions for Forms 1094-B and 1095-B
Instructions for Forms 1094-C and 1095-C
We recommend downloading them now so you can sift through them and seek help if needed.
Step 3: Meet Deadlines
To avoid potential penalties, complete reporting requirements by their deadlines. Here’s a list of deadlines you’ll need to follow:
• 1095-C forms must be delivered to employees by Jan 31, 2018
• Paper filing with the IRS must be done by Feb 28, 2018
• E-Filing with the IRS must be done by March 31, 2018*
*If you have 250 plus information returns to file, you need to file electronically.
The IRS has a useful Q&A page where you can find help for the 1094 and 1095 requirements.
Get Help Sooner, Not Later
Adjusting to new regulations and requirements is always a challenge. If you’re unsure of what to do or have questions, it’s important to ask for help sooner rather than later. This prevents you from missing deadlines and filing information incorrectly. If you’re unsure where to start, call your benefits administrator. Though they may specialize in services like FSA administration, they’re also connected to hundreds of resources and will be more than happy to point you in the right direction when it comes to ACA reporting. Make sure to tap all the resources your HSA and FSA administrators offer!
