De-coding ACA Reporting: Simplifying Compliance for Employers

Employers are faced with the annual challenge of Affordable Care Act (ACA) reporting, and navigating the complexities of ACA compliance can seem impossible. Our goal is to simplify this process, breaking down the ACA reporting requirements into a language that’s easy to understand and act upon.

Understanding the ACA Reporting Requirements

The ACA mandates that employers with 50 or more full-time employees (including full-time equivalent employees) must report information to the IRS and their employees about their compliance with the employer shared responsibility (“pay or play”) provisions and the healthcare coverage they have offered. This is done using forms 1094-C and 1095-C.

Why ACA Reporting is Essential

ACA reporting is critical for both compliance and for employees to confirm their health coverage when filing individual tax returns. It’s not just a regulatory formality; it directly impacts the tax liabilities of both the employer and the employees.

Breaking Down the Reporting Process

The reporting process involves several steps:

  1. Identifying Full-Time Employees: Employers need to determine which employees are full-time and are therefore eligible for health coverage under the ACA.
  2. Coverage Information: Employers must document the health insurance coverage offered to each full-time employee, including the lowest-cost premium and the type of coverage.
  3. Filing with the IRS: Employers must complete the relevant sections of Forms 1094-C and 1095-C for the IRS. This includes providing information on the employer’s health coverage offers and coverage enrollment.
  4. Employee Statements: Employers must furnish a copy of Form 1095-C to their full-time employees, which they can use for their individual tax filings.

The Challenge of Deadlines

Employers must be diligent about the deadlines for ACA reporting. Typically, employee statements must be furnished by January 31, and IRS returns must be filed by March 31 (if filing electronically).

Consequences of Non-Compliance

Failing to comply with ACA reporting can result in significant penalties. The IRS imposes fines for failing to file, inaccuracies in the reporting, and for not providing employee statements.

How We Can Help

Our team provides support throughout the ACA reporting process. We offer solutions for data aggregation, form generation, and filing services. We help you meet compliance mandates efficiently and with confidence.

Conclusion: Turning Impossible into Easy

ACA reporting doesn’t have to be a source of stress. With the right approach and resources, the intricate codes of ACA compliance can be decoded. Our expertise transforms the complexity of ACA reporting into an easy process, allowing employers to focus on your own business.

As the ACA reporting season approaches, remember that preparation is key. By understanding the requirements and deadlines, and partnering with knowledgeable partners, you can navigate ACA reporting with ease.