Employer Health Care Information Reporting Requirements and Deadlines

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Employer health care information reporting requirements and deadlines
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Reporting by “Applicable Large Employers” (ALEs)

aca reporting standards for large employersUnder provisions of the Affordable Care Act (the ACA or Obamacare), if your organization is an
ALE, you must report certain health care information to your full-time employees and to the IRS. Generally, an ALE is an employer with an average of 50 or more full-time and “full-time equivalent” employees during the preceding calendar year. So if your organization averaged 50 or more employees during the calendar year 2015, you have an ACA reporting obligation for the calendar year 2016. Noted below are the forms that must be filed to report health care information for the calendar year 2016, and the applicable deadlines:

  • Forms 1095-C must be filed with the IRS (using transmittal Form 1094-C) by February 28, 2017, or by March 31, 2017 if filing electronically. Note: ALEs that file 250 or more ACA information returns in a calendar year are required to file their returns electronically.
  • Forms 1095-C must be furnished to employees by March 2, 2017 (which is a 30-day extension from the original due date of January 31, 2017).
  • For employers that file 250 or more Forms W-2 in a calendar year, the value of health insurance coverage provided to employees must be reported of Form W-2, Box 12, Code DD. For the calendar year 2016, the due date for furnishing Forms W-2 to employees is January 31, 2017, and the due date for filing with the Social Security Administration (SSA) is also January 31, 2017, whether using paper forms or filing electronically. Also, California has conformed to this same reporting deadline for Forms W-2.

Reporting by Small Employers

aca reporting standards for small employersIf your organization employees fewer than 50 full-time and full-time equivalent employees during a calendar, generally you are exempt from ACA information reporting, with one major exception noted below.

If your organization offers employer-sponsored self-insured health coverage to employees, you will use Form 1095-B to report information to individual employees that received the self-insured coverage. The deadline for filing this form with the IRS (using transmittal Form 1094-B) is February 28, 2017, or March 31, 2017 if filing electronically. The deadline for furnishing the form to covered employees is March 2, 2017.

How Does President Trump’s Executive Order on Obamacare Affect Your Business

On January 20, 2017, President Trump signed an Executive Order (the Order) to begin the process of repealing and replacing Obamacare. The Order gives the U.S. Department of Health and Human Services (HHS) and certain other federal agencies discretion to change, delay or waive the enforcement of some provisions of the ACA. Caveat: The Order is primarily a “policy” document setting forth President Trump’s pledge to repeal and replace Obamacare. Although the HHS and other federal agencies have some discretion in administering the ACA, actual changes in the law must be made by Congressional legislation, which will be followed by the issuance of interpretive Treasury regulations and rulings. This process will take time, perhaps years. Until the health care laws are actually revised, we encourage our clients to continue complying with existing laws, regulations and rulings. As actual changes are made to health care laws, we will alert you to these in future WNDE newsletters.

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Joseph Ludin, CPA, is an audit manager.  In his role, he specializes in audit assurance and consulting for governmental agencies,...