The IRS announced a deadline extension for Affordable Care Act reporting. Here’s what you need to know.
Welcome back from what we hope was a wonderful holiday season. Because sometimes the first week of the New Year can leave people feeling a bit stressed as they try to get back into the swing of things again, we wanted to share some information with you that may help you breathe a little bit easier when it comes to your human resources to-do list:
The Internal Revenue Service (IRS) announced that it is giving the Patient Protection and Affordable Care Act (ACA) reporting deadline an extension to March 31, 2016.
What are ACA reporting requirements?
The ACA reporting requirements are mandatory for organizations providing minimum essential coverage (this includes insurers and employers that self-insure health care benefits) regarding the coverage provided. Large employers — those had 50 or more full-time and full-time equivalent employees in the previous year, for the most part — are required to report about the health coverage offered to its full-time employees. The first reporting requirements for 2015 are due in early 2016.
What types of information are we talking about?
According to a great summary by the law firm Clark Hill PLC, employers are required to provide certain information reports to full-time employees and others who are enrolled in coverage using Form 1095-B and Form 1095-C. Employers are also required to provide certain reports to the IRS using Form 1094-B and Form 1094-C. Clark Hill explains the reason for this reporting:
The IRS will use the information to determine whether an employer has complied with the ACA requirement to offer affordable, minimum value health coverage to full-time employees and their dependent children or whether the employer will owe a penalty. The IRS will also use the information to determine individual compliance with the requirement that most individuals maintain minimum essential health coverage or pay a penalty, and to determine individual eligibility for a premium tax credit for coverage purchased through a health insurance marketplace.
The due date for providing the reports to full-time employees and others enrolled in coverage (IRS Forms 1095-B and 1095-C) has been extended from February 1, 2016 to March 31, 2016. In addition, the due date for filing returns with the IRS (IRS Forms 1094-B and 1094-C) has been extended from February 29, 2016 to May 31, 2016, if not filing electronically, and from March 31, 2016 to June 30, 2016 if filing electronically. More details and additional information can be found on Clark Hill’s website.
myHR Partner clients should contact their account partner if they have any questions or need further assistance with their ACA report filing.
You can find more information and guidance on the new reporting requirements on these IRS webpages:
- Information Reporting by Applicable Large Employers
- Instructions for Forms 1094-B and 1095-B
- Instructions for Forms 1094-C and 1095-C
- Questions and Answers on Information Reporting by Health Coverage Providers (Section 6055).
- Questions and Answers on Reporting of Offers of Health Insurance Coverage by Employers (Section 6056);