Affordable Care Act Filing Deadlines
Applicable Large Employers
While the IRS showed some leniency in 2016, starting in 2017 the IRS is adhering to strict filing deadlines for ACA reporting.
Applicable large employers (50+ Full-time employees, including Full Time Equivalents) must issue a Form 1095-C to each full-time employee, regardless of whether the employee is enrolled in an employer-sponsored health plan. ALEs need not issue 1095Cs to full-timers who are in the health coverage waiting period.
For the IRS, 1095-C forms are submitted along with a single 1094-C transmittal form. The transmittal serves as a summary page for the 1095-Cs. The IRS gets one 1095-C form for each employee who was a full-time employee any month of the calendar year. Part III of the 1095-C is only completed by self-insured ALEs. In all other cases, Part III is left blank and the insurance company will report the coverage information on Forms 1094-B and 1095-B.
- Issued to employees: Tuesday, January 31, 2017 (emailed or postmarked by Jan. 31st)
FORMS 1094-C and 1095-C
- To IRS if filing on paper: Tuesday, February 28, 2017
- To IRS Electronically: Friday, March 31, 2017
Failure to provide individual 1095-Cs to all full time employees–and file timely or correct forms 1094-C/1095-C—can incur a penalty of up to $260 per form, for each late or incorrect 1094-C/1095-C, with a maximum annual penalty of $3,178,500. In the event that a failure to file is due to intentional disregard, the penalty is $500 per incorrect form, and no yearly cap applies. [Penalties are indexed yearly for inflation.]
Companies may request a 30-day extension using Form 8809. Also, an employer filing 250 or more information returns during the calendar year must file these returns electronically.
FORM 1095-B for “Self-Insured” Companies
“Self-Insured” means that employers pay out-of-pocket for claims instead of paying a fixed premium to an insurance carrier. Usually, insurance companies are responsible for filing forms 1095-B and 1094-B. However, self-insured companies with fewer than 50 FT/FTEs also use 1094-B/1095-Bs. Self-insured ALEs can use section 3 of Form 1095-C/1094-C instead of filing forms 1095-B/1094-B. Self-insured ALEs must issue a 1095-C to each FT employee, as well as enrolled part-time employees, and retirees who also receive coverage.
Passport Software does not offer legal advice, please consult your accountant for tax preparation.
Learn more: IRS reporting regulations
Learn more about Passport Software’s ACA Management Solutions