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Monday, 21 November 2016 15:13

1095 Reporting Changes and Delays

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Not long after indicating that there would be no exceptions to the January 31st deadline for 1095 B & C forms, the federal government reversed itself. You may have heard there are several delays and changes that have been announced for this year’s reporting:

  • 1095-C and 1095-B forms are now due to your employees by March 2, 2017, rather than January 31st; 

  • There WILL be a “good faith” standard AGAIN this year that if you send forms with the best of your knowledge and you send them on time, you will not face penalties for incorrect information; and

  • Your 1094 Transmittals are still due at the same time – due on February 28th if you’re using paper and due March 31st if you’re filing electronically.


Background

The Affordable Care Act added section 6056 to the Internal Revenue Code, which requires Applicable Large Employers (ALE) to file information returns with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offered. The IRS will use the data provided on the information return to administer the employer shared responsibility provisions of section 4980H. The IRS and the employees of an ALE member will use the information provided as part of the determination of whether an employee is eligible for the premium tax credit.

ALE members that sponsor self-insured group health plans also are required to report information under section 6055 about the health coverage they provide Those ALE members that sponsor self-insured group health plans file with the IRS and furnish to employees the information required under sections 6055 and 6056 on a single form. 


Changes to the 1095 Forms

There were a number of changes to the forms themselves, as well as the codes you should use. Of course the most complex lines are lines 14 through 16, and several changes were made there that we will detail in a blog article next month, as well as in our December 14th webinar

The first year of ACA reporting was very tough on some employers. Many payroll vendors can offer these capabilities, which is convenient as they already house so much of your data. However, some payroll services charge a lot for ACA reporting, and some have done a very poor job with it. 

If you are looking around for alternatives for your 2016 reporting, our in-house online benefits portal, is capable of keeping you in compliance with these reporting requirements including ongoing employee tracking, 1094-C and 1095-C eligibility reporting, audit and e-filing of these reports. The ACA Dashboard can track measurement and stability periods, and provide online ALE and Affordability calculation tools. 

Please This email address is being protected from spambots. You need JavaScript enabled to view it. if you would like to learn more or see a demo of this portal.
Read 526 times Last modified on Tuesday, 20 December 2016 14:58
Juliet Fitzgibbons

Juliet joins Fall River as an Account Executive and brings over 15 years of prior broker and account management experience. Her experience brings extensive knowledge on employee benefit programs, account management and creative cost-saving strategies and compliance solutions for employers of various sizes.

She is responsible for new business proposals, client renewals including plan benchmarking, rate analysis and mid-year reviews. She helps clients navigate healthcare systems and educates employers and employees through open enrollment meetings and day-to-day service requests. Juliet joined Fall River in 2015.