TJT Client Advisory Services

Gathering Information for ACA Required Reporting Must Start Now

The Affordable Care Act dictates that some very specific reporting requirements be in place for tax year 2015.   All companies should be aware of the requirements and start gathering information now because this information will be required as a part of your income tax return.

If you have a payroll company such as ADP or Paychex, you should inquire to make sure they are gathering this information.   If you do your payroll in-house then you should be gathering this information and preparing it for reporting purposes.  Please contact our office if you have questions or concerns about these requirements.

Impact for Employers with 50 or less Full Time Employees (Small Employers)

  • If an employer provides self-insured health coverage to their employees they must file Form 1095-B (Health Coverage Information Return) and Form 1094-B (Transmittal of Health Coverage Information Returns).

Due Dates

To IRS by 2/29/2016

To Employees by 1/31/2016

When an insurance company provides the employer-sponsored health coverage (fully insured coverage), they should complete Form 1095-B.  However, the employer should confirm with insurance company that they are completing these forms.

Impact for Employers with 50 or more Full Time Employees (Large Employers)

  • An employer with 50 or more full time employees during the preceding year (considered an applicable large employer / ALE), will need to file form 1095-C (Employer Provided Health Insurance Offer and Coverage) and 1094-C (Transmittal of Employer Provided Health Insurance Offer and Coverage Information Returns) for the 2015 year.

Due Dates

To IRS by 2/29/2016 (Can be extended using Form 8809)–E-File Requirement exists for employers with 250+ employees

To Employee by 1/31/2016

  • In 2015, no penalties will be assessed on employers with 50 – 99 FTE’s, even though they are required to file the 1095 C form. Penalties will start in 2016 for employers with 50 or more FTE employees.