Updated for ACA filing year 2021
The IRS requires employers who are considered “applicable large employers (ALEs)” to be compliant with the ACA rules and ACA reporting. It’s always good to be well prepared for IRS reporting and requirements!
It’s important to understand the penalties for an employer who must report to the IRS and does not comply with the ACA Mandate. I’ll help with a little refresher…
Applicable large employers – employers with 50 or more full-time employees, must offer health insurance that is –
- affordable* and;
- provides minimum value* and;
- offer to at least 95% of their full-time employees and their dependents or be subject to penalties.
*Check with your carrier to determine if your plan meets these requirements.
Here’s a snapshot of how the penalties work:
Now, let’s check out the requirements and IRS deadlines for 2021 reporting.
ALEs must report to the IRS information about health insurance coverage offered to its full-time employees (and their dependents). ALEs are required to report to the IRS, as well as to their full-time employees, regardless of whether the ALE actually offers health insurance coverage.
Required Forms:
1095-C: Employer-Provided Health Insurance Offer and Coverage
- Filed with the IRS, and
- Furnished to employees
1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
- Filed with the IRS to accompany Form 1095-Cs
How to Report:
To the IRS:
– Paper Returns
– Electronic Returns
- ALEs that file 250 or more 1095-Cs are required to file electronically through the AIR Program (ACA Information Returns – did you know Efficient Hire can handle reporting on your behalf?)
To Employees:
– Paper by mail 1095-Cs
– Electronic 1095-Cs
IRS Reporting Deadlines:
- March 2, 2022 (extended from January 31): 1095-C to Employees
- February 28, 2022: Paper Returns to IRS (1094-C & 1095-C)
- April 1, 2022: Electronic Returns to IRS (1094-C & 1095-C)
Now that the scary stuff is out of the way (don’t worry, we all get a little nervous when it comes to IRS rules)…
What is your ACA Compliance Plan?
As a large employer to successfully comply with the Employer Mandate, start by outlining your Company ACA Compliance Plan:
- Does your health insurance plan meet minimum essential coverage and minimum value?
- Who do you offer coverage to?
- When do you offer coverage?
- Is it affordable to everyone you offer to?
You may be asking, “how in the world am I supposed to track all of this and provide accurate information on every single form I must file?”
You need to have an ACA management toolkit that helps you stay compliant with your ACA Plan. It should assess your penalty risk, track and measure eligibility, automate employee notifications, and automate form submission when it’s time to file.
Here’s how the Efficient Hire ACA management toolkit can help!
- Quick & Easy Setup: take control of your ACA compliance with the guidance
of our dedicated support team. - Multi-EIN Support: we handle the setup requirements for businesses of every size or complexity.
- Risk Management: avoid penalties – optimize your contribution & safe harbor using our affordability simulator.
- Eligibility Control: manage any employee status updates & schedule eligibility notifications with ease.
- Real-time Tracking: we monitor employee hours & statuses taking the guesswork out of eligibility changes
- Integrated Reporting: 1094/1095’s are electronically filed with the IRS & delivered digitally to employees.
See? Not so scary after all! Let us know if we fit into your ACA Compliance Plan; we’re happy to be there for you. Take the weight of risking penalties off your shoulders and start on your journey to ACA Compliance today! Go ahead, schedule a quick free demo, we’ll wait…