As we approach the end of the year, employers should begin to prepare for tax season. Per the Affordable Care Act, you are required to file a number of forms with the IRS as well as send notices to your employees.
Who must report?
Applicable Large Employers (ALEs), defined as a business which employs, on average, 50 or more full-time workers. Any employer can qualify as an ALE, including tax-exempt organizations and government entities. Use Forms 1094-C and 1095-C to report to the IRS and distribute applicable copies of the 1095-C to each employee.
Non-ALEs (smaller businesses with less than 50 employees) which sponsor a self-funded healthcare plan must comply with IRC 6055 requirements and report to both the IRS and individuals covered by minimum essential coverage. Use Forms 1094-B and 1095-B for these purposes. These forms will be sent to you by your insurance carrier.
What are the deadlines?
Employees must be notified of healthcare coverage, via a 1095-B or 1095-C as the situation warrants, by January 31, 2022. You may distribute these forms by mail, in person, or via electronic means (email) with consent.
Paper filing with the IRS must be completed by February 28, 2022.
Electronic filing with the IRS is mandatory for those employers filing 250 or more Forms 1095-C. You must file via the ACA Information Returns (AIR) system and do so by the deadline of March 31, 2022.
For more information on your filing requirements, with regard to the IRS and employee notices, call our office for more personalized assistance.