ACA Reporting | Human Resources

ACA Reporting | Human Resources

Just complying with the ACA isn’t enough. The government needs to be certain that the policies are applied well across the board. It ensures this through ACA reporting. This health reporting is part of the law & the employer is required to give a full report annually. This report is submitted to the IRS and they’ll ensure that all employers offer their full-time employees the coverage they require.

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What is ACA Reporting?

According to the law, employers need to report all the healthcare coverage details and information to both the IRS and the employees. This is absolutely mandatory as of 2015. To the employees, you need to provide the report according to the federal filing deadlines of W-2 and 1099.

This means that the information has to be provided to the employees by the 31st of January (1St February in 2016, as 31st is a Sunday). There are two forms that you need to file with the IRS. The forms are available in both paper and e-file, so you can fill in either one of them as per your preference.

The Process

You can file online, through paper, or download desktop software to file them. Here’s a brief look at the process of filing the forms.

  • Employee Numbers- Any company with 50 or more full-time employees needs to follow ACA reporting. According to the rules, any employee that works more than 30 hours a week or more than 120 days in a year is considered to be a full-time employee. So you need to first determine just how many employees you might have.
  • Dependents- ACA requires full coverage in essential health benefits for employees and their dependents. It means that you need to gather the details of all the dependents as well. You need to get the most current data from your employees about the number of dependents they might have.
  • Details- You will need employer ID numbers and the taxpayer numbers of your employees and their dependents. You’ll also need their addresses and details on the months of coverage for ACA reporting.
  • Forms- The IRC or Internal Revenue Code section 6055 has all the details about filing the 1095-B form. This is to be issued to the IRS and the individuals insured, by either the insurance company or the self-insured employer. This is the form that small business employers with employee strength of under 50 need to file.

The form 1095-C is for bigger companies with employee strength of over 50. The IRC Section 6056 provides the details in this case. This needs to be supplied to both the IRS and the employees as a part of ACA reporting. 

The Dates

For 2016, the forms and all the information should be provided to the employees by February 1st. Otherwise, the last date for providing the information to employees is 31st January.

The paper copies of the forms 1095-B or 1095-C need to be filed on 29th of February with the IRS. The e-forms need to be filed by 31st of March. The process is similar to W-2 reporting so all the deadlines are in line with the federal form filing norms. These are the basics of ACA reporting and more information is easily available online.

Content by Webvisable

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