Let Us Help Make ACA Reporting Easy
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it useful.
According to SHRM, the IRS has extended the deadline for employers to provide employees with a copy of their 1095-C or 1095-B from Jan. 31 to March 2, 2021 (for the 2020 tax year).
The IRS has extended “good-faith effort” transition relief to employers for the 2020 tax year as well.
Form filing deadlines remain unchanged, and they are still Feb. 28 for paper filing or March 31 for electronic filing.
If you haven’t done so, it’s time to prepare Forms 1094-C and 1095-C, making sure that the form information is correct. Entering inaccurate information could lead to IRS penalties.
This data informs the IRS about what health coverage was offered to employees and how much it cost them.
As you begin the ACA reporting process, make sure to minimize the risk of penalties by validating the accuracy of employee data:
• Gather employee information and validate employee hours to ensure accuracy of full-time,
full-time equivalents, or non-full-time numbers of employees
• Double check the accuracy of employee information like SSNs, birthdates, and wages
• Make sure appropriate coverage was offered to eligible employees (and dependents)
• If there were past errors, make sure to repair those errors to ensure accuracy going forward.
Make sure you correctly assess the number of full-time employees that are not in a limited non-assessment period, which is explained in the ACA Times.
If you own several businesses, each with fewer than 50 employees, they may be required to file as an Aggregated ALE Group.
A 5% margin of error is allowed monthly regarding the 95% offer of coverage threshold. More than a 5% monthly margin of error could result in steep penalties.
If eligible employees were not offered appropriate coverage, make sure to identify and correct the cause of the error.
Gather and review relevant documentation and ensure that you are monitoring appropriate offers of coverage on a monthly basis.
ACA compliance and reporting can be a burden. We can help ease the stress of ACA data management and compliance throughout the year.
Our ACA Full Service option allows you to turn everything over to us – just provide a spreadsheet with employee data, and we do the rest. We also offer penalty relief consultation services.
Our IRS-certified ACA software is affordable and easy to use. You can aggregate all your ACA management data in our easy to use ACA software solution and simplify the compliance and reporting process.
And, we provide optional IRS-approved proxy submission for our ACA Software users.
Call 800-969-7900 to learn more. Or contact us – we are here to help.