The IRS Has Extended Certain ACA Reporting Deadlines – Here’s What It Means For Your Business
Every year, employers around the country must file Forms 1095-B and 1095-C with the IRS and send copies to their employees. Part of the Patient Protection and Affordable Care Act (PPACA), sometimes referred to as the ACA or Obamacare, employers with 50 or more full-time or full-time equivalent (FTE) employees and all self-insured employers must use these forms to report employee healthcare coverage information to the IRS.
Form 1095 Distribution Deadline Extended
Applicable Large Employers (ALEs) must provide full-time workers with minimum essential coverage. By filling out forms 1095-C and 1095-B employers prove they offer acceptable coverage as required under the ACA.
Previously, the deadline for providing employees with a copy of their 1095-C or 1095-B was January 31st. Last October, the IRS announced it would extend the deadline to March 2nd, 2021. While the IRS extended the date for providing employees with 1095 forms, eligible businesses must still file these forms with the IRS by February 28th for paper filing and March 31st for electronic filing.
The IRS also extended “good faith effort” transition relief to employers for 2020 reporting. This means that the IRS will not impose penalties on companies that show they made good-faith efforts to comply with the information reporting requirements. This only applies to employers that submit incorrect or incomplete information. It does not apply to employers that fail to submit the required information on time. It’s important to note that this relief is transitional, meaning the IRS does no intend to offer it in future years.
Are You Prepared?
Even with the extended deadlines, employers may want to start gathering the information needed to complete, distribute, and file their returns sooner than later. It can take time to gather the appropriate paperwork and information, and companies that do not meet the deadline will face penalties.
As COVID-19 continues to spread throughout much of the country, employers need to think carefully about how they will distribute 1095 forms this year. Although many companies are operating remotely, sending these forms via email is only allowed if employees consent in advance.
MEBO offers employee benefits to small businesses, ALEs, and large corporations. We work directly with our clients to evaluate their needs and develop a comprehensive benefits plan that fits their budget. Please contact us for information about our services or to schedule a consultation.
