The Affordable Care Act has prompted many specific questions from employers around how to properly report healthcare coverage to the IRS as well as to their employees. As with any tax change, it takes a little research to get things right.
- Who is Required to Report? Large employers that employ an average of at least 50 full-time employees on business days during the preceding calendar year are required to meet the new regulations. Full-time work an average of at least 30 hours per week and any full-time equivalents. This includes government and nonprofit entities. The IRS realizes there are unique situations that aren’t so clear-cut, so make sure to review the full article if you don’t have any full time employees, sponsor a self-insured health plan, or have merged with another entity recently.
- What Should Be Reported? As a general method, organizations need to file a section 6056 return by filing a Form 1094-C (transmittal) and, for each full-time employee, a Form 1095-C (employee statement).
- When to Report Required Information? Organizations must file Form 1094-C and Form 1095-C for each employee with the IRS on or before February 28 (March 31 if filed electronically) of the year immediately following the calendar year for which the offer of coverage information is reported. They must also furnish the statement to each full-time employee on or before January 31 of the year immediately following the calendar year to which the information relates. This means that the first Forms 1095-C (the statements for 2015) must be furnished to employees no later than February 1, 2016 since January 31 is on a Sunday.
Now you have a better understanding of who, what, and when for the ACA reporting requirements, but the question of HOW to file the appropriate information for your business still stands. You know the right forms, but how can you ensure pulling accurate and up-to-date information? Intacct is a best-in-class cloud financial management and accounting solution that’s easy to implement and integrates with AmeriFlex Workforce Management Solution through the functionality of Workforce Go!
Until you have the answer for HOW you’re going to track data for the new ACA reporting requirements, you’re going to struggle with filing in 2016. Contact us at BTerrell Group, LLP for more information about Intacct and Workforce Go! to help you answer the HOW and get started right away. Tax season is right around the corner!
By Brian Terrell of BTerrell Group, LLP. Intacct and Sage ERP & CRM provider based in Dallas.