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Wednesday, November 9, 2016

Stay Compliant: Beware of These ACA Penalties

Stay Compliant: Beware of These ACA Penalties

A big part of staying compliant with the Affordable Care Act is reporting the coverage you offer with the IRS on Forms 1094 and 1095. After all, if you don’t report that you offered coverage that met minimum essential coverage and value to your full-time employees, how will they know you did?

So not only can not reporting get you in hot water for not covering your full-time employees, it can also incur you some penalties of its own. Even if you did offer adequate coverage, if you don’t report it, you could pay up to $260 per each return not filed. Of course, this penalty can’t exceed $3,193,000 per year, but who has that just lying around?

Oh, and the same penalties apply to the employee copies if you don’t send those out either. And if you don’t have $3,193,000 lying around, are you likely to have $6,386,000 ready to send to the IRS? Didn’t think so.

Now, these penalties could be waived, you’d just need to prove the failure to file was due to reasonable cause (think life-or-death situation) rather than willful neglect.

ACAwise is here to help make sure you’re not at risk for any reporting penalties. We automatically generate your ACA codes and everything needed to complete ACA Forms 1094 and 1095 based on the information you provide. So when it comes time to e-file your forms, all you have to do is review and hit send! Then your forms are instantly processed and sent off for filing with the IRS.

We’ll even mail out your recipient copies! Just select the postal mail option before you transmit your forms and we’ll print them out and mail them from our headquarters in South Carolina by the next business day.

And if you have any questions regarding penalties, ACA filing, or getting started with ACAwise, just give us a call! We’d be happy to set up a free demo to help you learn the program before setting you up with your very own account.

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