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Wednesday, January 31, 2018

Today is the Day! You Need File IRS Form W-2/1099


Today is the day! You must file IRS Form W-2/1099 to avoid penalties. If you are filing either ACA Forms 1095-B or 1095-C, then you probably need to file W-2 Forms and possibly a 1099 or two. There is no time to lose! If you fail to file here are the penalties your business can expect.



Today is the Day! You Must File IRS Form W-2/1099


IRS W-2 Form

The Protecting Americans from Tax Hikes (PATH) Act that was issued last December included a few new requirements for employers. For example, businesses are now required to file Form W-2 with the Social Security Administration and issue copies to recipients by Jan 31st.

In the past employers had until the end of February for paper filing and the end of March for electronic filing. In addition to the filing deadline, there were changes made to extension requests for Form W-2. IRS Form W-2 is only available for a 30-day extension, and this extension is not automatic.

If an extension is necessary, you must complete and submit a paper copy of Form 8809, The Application for Extension of Time to File Information Returns as soon as possible.


W-2 Form Penalties

Your business will be fined penalties if you fail to file the required employee W-2 Forms by today, fail to include the required information, or paper file when required to e-file.

Penalty amounts are based on the date correct forms are filed, or the correct employee statement is provided to the Social Security Administration (SSA). The penalty for failing to file an accurate information return is separate from failing to submit the correct employee statement.

Failing to file employee W-2 forms by today will result in a $30 penalty per form that is submitted within 30 days following today's date. Filing more than 30 days following the deadline but before Aug. 1st raises the penalty to $60 per form.

Filing after Aug 1st or failing to file corrections will increase the penalty to $100 per form. The maximum penalty for large businesses is $1,500,000. A large business is considered an organization with more than $5 million and government entities.



IRS 1099-MISC Form

Today’s deadline also applies to Form 1099-MISC reporting non-employee compensation for contract workers. You are required to issue recipient copies of Form 1099-MISC to your independent contractors and file with the IRS.



1099-MISC Form Penalties

Failure to file Form 1099-MISC by today results in a $30 penalty per form if submitted within 30 days following today’s date. The maximum penalty is $250,000 per year for large businesses.

Filing more than 30 days following today’s deadline but before Aug. 1st raises the penalty amount to $60 per form. The maximum fine for large businesses is $500,000 per year.

Filing after Aug. 1st or not at all will increase the penalty to $100 per form, with a maximum fine of $1,500,000. If you intentionally disregard filing all together, you will be fined $250 per return with no maximum penalty limitation.



How Can You Avoid Penalties Last Minute?

Our sister product TaxBandits provides quality, US-based customer support at no extra charge! Give us a call at (704)684-4751 or send us a live chat Monday through Friday, 9:00 AM to 6:00 PM EST to talk to a friendly customer support representative. We also provide 24/7 support via email at support@TaxBandits.com.

What are you waiting for?? Today is the deadline for filing IRS Form W-2/1099! It’s not too late to e-file and allow us mail recipient copies for you!!











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Monday, January 29, 2018

Do You Need to File IRS 1099s or W-2s?


If you are filing either ACA Forms 1095-B or 1095-C, then you probably need to file some W-2 Forms and possibly a 1099 or two.

Well, look no further because the software developers that brought you simple and secure ACA e-filing (that’s us!) have been in the e-filing game awhile and already have just what you need to file all your information returns: TaxBandits!

You can easily and quickly e-file the following forms with TaxBandits:

  • 1099 Forms
    • 1099-B
    • 1099-DIV
    • 1099-INT
    • 1099-MISC
    • 1099-R
    • 1099-S
    • 1099-Correction
    • Form 1096*
  • W-2 Forms
    • W-2 and W-2c Forms
    • W-3 Form Generation*
  • 990 Forms
    • 990-N (e-Postcard)
    • 990-EZ
    • 990
    • 990-PF
    • 1120-POL
  • 94x Series
  • Extensions
    • 9909
    • 8868

* Transmittal Form 1096 and W-3 are not technically required when e-filing since a digital version is automatically created when transmitting returns to the IRS. However, when you e-filing using TaxBandits, you generate a copy of the transmittal form for your business records.



TaxBandits provides quality, US-based customer support at no extra charge! Give us a call at (704) 684-4751 or send us a live chat Monday through Friday, 9:00 AM to 6:00 PM EST to talk to a friendly customer support representative. We also provide 24/7 support via email at support@TaxBandits.com.


So what are you waiting for? The deadline for filing your 1099s and W-2s is Wednesday, January 31st! Check out TaxBandits today!



E-File Today!



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Thursday, January 25, 2018

Five Important ACA Penalty Exemptions You Need to Know


Most individuals must carry qualifying health insurance or pay a substantial penalty for the months they do not. However, if you are eligible for a health coverage exemption, you will not be obligated to pay the penalties. Check out these five important ACA penalty exemptions you need to know.

Five Important ACA Penalty Exemptions You Need to Know

It is important to remember that exemptions are based on several possible circumstances; including hardships, traumatic life events, financial status, and in some groups membership. While you can claim some health coverage exemption on your federal tax return, you might be required to submit an application to the Marketplace.

You are not required to pay the penalty for any month you have minimum health insurance. If you qualify for an exemption, you will not have to pay the penalty fee for the months you were without health coverage.

Types of ACA Exemptions


Income-Related Exemptions

You are not required to file a tax return if your annual salary doesn’t meet the tax filing requirement. This happens when the cheapest insurance plan available that’s offered through your employer or Marketplace is more than 8.16% your household income. You are not required to file a tax return because your annual salary does not meet the tax filing requirement.

Hardship Exemptions

If you experienced significant financial hardship or other circumstance that kept you from purchasing health insurance you may qualify for this exemption. As a result, you will not be obligated to pay any penalty fees.

Examples of qualifying Hardships: Homeless, eviction or foreclosure, domestic violence, the death of a family member, fire, flood, natural disaster, human-caused disaster, extensive medical expenses. For the full list visit healthcare.gov.

Health Coverage-Related Exemptions

You qualify for this exemption if you were only uninsured for two consecutive months during the previous fiscal year, or you lived in a state that did not expand its Medicaid program, and household income is below the federal poverty level.

Group Membership Exemptions

To qualify for this exemption you must be a member of a federally recognized tribe, you are eligible for services through an Indian Health Service provider, or you are a member of a federally recognized health care sharing religious ministry. This exemption requires an application. For more information concerning the Religious Exemption visit healthcare.gov.

Other Exemptions

You are exempt if you are incarcerated or served a term in prison or jail. Or you are a U.S. citizen living abroad or non-citizen living here in the US unlawfully. For further information and the definition of “lawfully present” visit healthcare.gov.

Understanding Your Employees Situation

Share this with your clients today to help educate them on ACA exemptions. Your job is to help them with their coverage; our job is to help you with your ACA reporting and compliance. Applicable Large Employers and Third Party Administrators can trust ACAwise with volume-based pricing and full-service features ensuring you get the best deal available!






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Tuesday, January 23, 2018

What You Need to Know About ACA Filing Penalties


The goal of the Affordable Care Act (ACA) is to help reduce the number of uninsured individuals in the United States and encourage employer health care benefits. But what happens if your company does not comply with ACA? Here is what you need to know about ACA filing penalties!

What You Need to Know About ACA Filing Penalties


If you are new to the Affordable Care Act, you may have a few questions about filing penalties. So who is required to file ACA Form 1095?





Employers with 50 or more full-time employees are required to provide affordable health insurance that meets a set federal minimum coverage and value.





Important 2017 ACA Deadlines


March 2nd: Provide Forms 1095-B or 1095-C to Full-Time Employees

February 28th: IRS Paper Filing Deadline for Form 1095-B or 1095-C

March 31st: IRS E-filing Deadline for Form 1095-B or 1095-C



2017 ACA Penalties


While the American Health Care Act (AHCA) is yet to pass through the legislature the Affordable Care Act (ACA) is still fully enforced. All Applicable Large Employers and Third Party Administrators are still required to file required ACA 1095 Forms by the deadline.


Failure to File/ Inaccurate Filing

Your business could potentially be penalized $260 -$520 per form if you fail to file a correct information return (1094 or 1095 Form), but this amount can not exceed $6 million in total.


Failure to E-File

If your business paper files 250 or more forms, you are required to e-file. If you fail to do so, then you will incur a $260 per form penalty. 

Failure to Meet 95%

If you do not offer coverage to a minimum of 95% of full-time employees, your business will face a fine of $2,260 ($188.33 per month) per full-time employee.


Failure to Offer Coverage

If your business fails to offer affordable health coverage, you will be fined $3,390 ($282.50 per month) per full-time employee.



Warning: If you intentionally disregard to file these forms at all, the IRS can pull out the big guns and increase your pre-statement and total penalties for your missing return.


ACA Filing Problems Solved!


At ACAwise we are dedicated to helping you file your ACA Forms correctly the first time to avoid any ACA filing penalties! But you are going to need to hurry up and get started today! There is only so much we can do when time keeps marching on!

If you have any questions about the ACA e-filing process, do not hesitate to give us a call at (704) 954-8420 or send us a live chat during our office hours: Monday through Friday 9:00 am to 6:00 pm EST. You can also email us at any time support@ACAwise.com, and we will get back to you as soon as possible!
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Friday, January 19, 2018

What is the Impact of the Affordable Care Act on Part-Time Employees

The Patient Protection and Affordable Care Act (PPACA) has affected employers who employ part-time employees in several ways. The most significant impact is ACA’s definition of full-time employment. What is the impact of the Affordable Care Act on part-time employees?


What is the Impact of the Affordable Care Act on Part-Time Employees


The PPACA considers employees working 30 hours or more full-time, however, traditionally employers defined part-time as those working less than 40 hours. This new definition has forced employers to revise their schedules or expand health care coverage
 

Affordable Care Act’s Impact on Part-Time Employees


“Under the monthly measurement method, the employer determines if an employee is a full-time employee on a month-by-month basis by looking at whether the employee has at least 130 hours of service for each month.”

- Affordable Care Act

Employers must take into account the number of part-time employers when determining whether they meet the threshold of 50 full-time or full-time equivalents (FTEs). Employers on the border will want to monitor the hours of part-time employees carefully to ensure employees do not affect employers responsibilities. 


Result of PPACA’s Requirements


While the PPACA requires employers to offer health insurance to full-time employees, there are no regulations for part-time individuals. The result is an increase in employers hiring more part-time employees working 29 hours or less per week.

Right now, there are no penalties under ACA for not offering health care coverage despite coverage provided to full-time employees. Employers should weigh the pros and cons of hiring staff more heavily made up of full-time or part-time employees.


Benefits of Full-Time Vs. Part-Time Employees

Take care of your employees, and they will take care of you.


Full-time employees are more likely to develop loyalty, a sense of ownership to a business, and remain with the company longer. This is an important factor to remember when considering the hiring and training costs of bringing on new staff members. They are also more likely to give the employer more control over their time and efforts. 

There are several benefits to hiring a part-time employee. They can be a great asset to small businesses due to their flexibility and relatively low cost.


Patient Protection and Affordable Care Act Filing


If your business is required to file ACA this tax season allow ACAwise and it’s dedicated team members to navigate you through these difficult times. ACAwise is solely focused on your ACA reporting and compliance by providing an innovative cloud-based system and experienced call staff in place to ensure full ACA compliance.


Start Filing 1099-MISC Today!

*Completely Risk-Free and No Need for Your Credit Card Information*







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Thursday, January 18, 2018

Deadlines and Penalties For IRS 1099 Form

As a Human Resources professional, you are well aware of the slew of government reports your business must file. Starting this tax season you will need to file some forms sooner. The IRS deadline for filing Form 1099-MISC is January 31st. Which means you can’t wait to get this done. There is no time to lose deadline and penalties for IRS Form 1099s.

Form 1099-MISC 2018 Deadline: January 31st
1099 Form Variations Deadline: February 28th (Paper)/ April 2nd (Electronic)



Deadlines and Penalties For IRS 1099 Forms

What Penalties Could My Company Face?

A penalty will be enforced if the filer fails to file the required 1099 series forms by the deadline, fails to include all required information, if the return contains incorrect information, or if the filer files on paper when required to e-file.

Penalty amounts are based on the date that the correct form is filed on or the correct payee statement is provided. The penalty for failing to file an accurate return is separate from failing to submit the correct payee statement.

Failure to File IRS 1099 Series Forms

Failure to file 1099 forms by the deadline results in a $50 penalty per form if submitted within 30 days following the due date. The maximum penalty is $532,000 per year or $186,000 for small businesses.

Filing more than 30 days after the deadline but before August 1st raises the penalty to $100 per form, with a maximum fine of $1,596,500 per year or $532,000 for small businesses.

Filing 1099 Forms after August 1st or failing to file corrections will increase the penalty to $260 per form, with a maximum fine of $3,193,000 per year or $1,064,000 for small businesses.

How to Avoid Form 1099 Penalties and Interest

Now that you understand the penalties and what they entail, I am sure you will avoid having to pay them. 1099 series of information returns reporting income from self-employment, interest and dividend, or independent contractors to the IRS are due by January 31st.

To avoid penalties use our sister product, Tax Bandits to e-file and pay any owed taxes on time with our quick, easy and secure step-by-step filing process. We provide filers built-in error checks, bulk upload data and experienced US-based customer support.


Start Filing 1099-MISC Today!

*Completely Risk-Free and No Need for Your Credit Card Information*




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Wednesday, January 17, 2018

Seven Important ACA Question You Need To Ask Yourself

Are you ready to file your Affordable Care Act (ACA) forms? If any Applicable Large Employers or Third Party Administrators fail to meet their obligations for offering health coverage to all full-time employees under Section 4980H, they will be liable for Employer Shared Responsibility penalties. Here are seven important ACA questions you need to ask yourself in preparation for filing.

Seven Important ACA Question You Need To Ask Yourself

1. Has your company accurately archived, documented, and tracked all the required data for eligibility?
  • Full-Time/Part-Time benefits eligibility (30 hours/week -- 130 hours/month).
  • Individuals that accepted and declined coverage.
  • 95% or more of full-time employees offered affordable coverage.

2. Do you have waivers or declination forms for those who declined the sponsored plan?


3. Do premium contributions for the least expensive plan satisfy the 9.66% affordability threshold?

  • Are you using the correct Affordability Safe Harbor Method?
  • Could you use a different Safe Harbor method to provide greater control over your company's health care costs?
  • What is the least expensive plan for each employee?

4. Have you reviewed the health plan contracts for eligibility limitations?
  • Will your company continue to insurance those who have moved from full-time to part-time status?

5. Are you prepared to file correct 1095/1094 Form information by the statutory deadline for each year?
  • ACAWise is a full-service ACA Form solution for Forms 1094/1095.

6. Are you prepared to file the Employee Coverage Tool (ECT) Forms and reply to any Exchange Inquiries?
  • Which team member is designated to access this information in order to complete and response to Exchange questions? 

7. Do you have proper documentation prepared for any future IRS inquiries?

Eliminate Penalties with Proper Planning

There is danger ahead…. ACA penalties are looming in the not so distant future. Severe fines and penalties can cause serious damage to any ALE or TPA. Are you ready for filing season?
ACAwise has dedicated team members ready to help you navigate through these turbulent times. ACAwise is solely focused on your ACA reporting and compliance by providing an innovative cloud-based system and experienced call staff in place to ensure full ACA compliance. Gain peace of mind this ACA filing season!


Sign-Up Today!



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Monday, January 15, 2018

What is the Individual Shared Responsibility Provision?

As you know, the Affordable Care Act (ACA) prohibits health insurers from denying individuals coverage based on pre-existing conditions or family histories. However, this was a major concern for lawmakers and insurers because they feared taxpayers would wait until they got sick to purchase health insurance. However, to stay in business, they must collect more money than they pay out. This is where the individual shared responsibility provision comes in.

What is the Individual Shared Responsibility Provision?



Individual Shared Responsibility

Employers, insurance companies, and individuals are all responsible for keeping health insurance coverage affordable and available. The individual shared responsibility provision is a guideline for the individual's responsibility and role in ACA. It states that individuals must carry health insurance, receive an exemption, or pay a hefty penalty. This penalty is a federal tax referred to as the shared responsibility payment.

Shared Responsibility Payment

If you employees are not covered by minimum essential coverage, they will need to pay the shared responsibility payment. The amount they owe will depend on several factors:

  • Number of uninsured individuals in the household during the previous calendar year.
  • Are the insured children?
  • How long have you and your dependents been uninsured?
  • Total income of your household

Avoid The Shared Responsibility Penalty

Your employees can avoid the shared responsibility penalty by carrying minimum essential coverage. This includes the health care plans provided by your business, health insurance provided by government programs, and health-care exchanges.

2018 Tax Season

As most of you are aware, the individual mandate has been repeal for the upcoming year, but your employees will still need to report coverage for 2017. Help to inform your employees about changes in regulations and what is expected of them this tax season. Remind them that if they did not carry insurance during the previous year they will face substantial penalties.

ACAWise Your Reporting and Compliance Solution

Don't be lulled into a false sense of security. Despite the ongoing efforts to “repeal and replace” the controversial Affordable Care Act, it is still required by law and those who ignore their responsibilities will face severe consequences.

Choose ACAwise to handle your company’s ACA reporting and compliance. Getting started is easy, and, with volume-based pricing, you will get the best deal available! Explore all ACAwise has to offer with a free demo. Get to know one of our knowledgeable product managers and learn how we can help you smoothly file your 1094 and 1095 Forms.


Schedule Your Free Demo



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Friday, January 12, 2018

New 2018 Withholding Tables Released by IRS


Thursday the IRS released Notice 1036 updating the income-tax withholding tables. This is the result of the Tax Cuts and Jobs Act enacted in December. The 2018 withholding tables are just the first in a series of future updates they will improve the accuracy of 2018 withholdings. Here is what your business needs to know about the new 2018 withholding tables released by the IRS.

The IRS Releases New 2018 Withholding Table



Implementation of 2018 Withholding Table

Before implementing the 2018 withholding tables business should continue to use the 2017 guidelines. However, you should switch to the new 2018 withholding tables as soon as possible, but no later than February 15th. 

Future Form W-4 Revisions

Notice 1036 will help to minimize the burden on taxpayers and employers. At this time employees are not required to do anything. But IRS is planning to revise Form W-4 later on this year because this form is ultimately used to determine how much your employee's paychecks are withheld toward income taxes. 

2017 Vs. 2018 Withholding Table

The Tax Cuts and Jobs Act passed last month made several changes to the established tax plan including the repeal of personal exemptions, an increase in standard deductions, and updates in tax rates and brackets.

2018 Withholding Table Details 

  • Employee portion of Social Security: 6.2% with a taxable wage of $128,400
  • Employee portion of Medicare: 1.45% with no wage base limit
  • Medicare Surtax: .9% which exceeds $200,000 or $250,000 for married taxpayers 


Guaranteed Tax Compliance

Comment below with any question for our experienced tax specialists. If your business still needs to file their ACA reporting and compliance forms, use ACAWise as your full-service solution. Provide the information you have on your employees’ insurance coverage and our variable-rate software will take care of the rest. Based on your information we will make sure the right codes are in place before e-filing your ACA Forms


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Wednesday, January 10, 2018

Your Crash Course Guide to IRS 6055 and 6056

While the individual mandate will be going away soon, we are all still required to file those forms this year. To clarify, despite the various changes to the Affordable Care Act (ACA), tax reports due during the 2018 tax season are based on requirements and coverage offers in 2017. Here is your crash course guide to IRS 6055 and 6056.

IRS Code Sections 6055 and 6056 in regards to the individual mandate requires employers to provide minimum essential coverage. Applicable Large Employers (ALEs) and Third Party Administrators (TPAs) must report specific information to the IRS such as coverage provided and the provider. Failure to comply with these reporting rules could cost your business. Here is your crash course guide to IRS 6055 and 6056.

Your Crash Course Guide to IRS 6055 and 6056



What You Need to Know About 6055

Section 6055 is used to determine whether individuals are covered by minimum essential coverage. This section calls for the health plan issuer or insurance company to provide Form 1095-B and Form 1094-B to show the individual's coverage levels. This will also prove the if an individual is fully insured through their employer or if they receive coverage through a spouse or parent.

ACA Forms Associated With Section 6055:
Form 1095-B:IRS information return that must be sent to the covered individual and filed with the IRS.
Form 1094-B:
IRS transmittal Form to be filed with the IRS along with Form 1095-B

What You Need to Know About 6056

Section 6056 applies to Applicable Large Employers (ALEs), which are businesses that employ 50 or more full-time or full-time equivalent employees. According to the ACA all ALEs are required to offer health coverage that meet quality and affordability standards.

Forms associated with section 6056 are used by the IRS to verify whether the employer met requirements and if they need to penalties for employees not offered adequate coverage.

ACA Forms Associated With Section 6056:
Form 1095-C
IRS information return that must be sent to the covered individual and filed with the IRS.
For 1094-C
IRS transmittal Form to be filed with the IRS along with Form 1095-B.

Self-insured employers that are also ALEs can use both sections of Form 1095-C and 1094-C to meet section 6055 and 6056 reporting requirements. 

Where 6055 and 6056 Reporting Gets Complicated

The above forms call for information not routinely captured by Human Resource databases such as dependent information details. Section 6056 requires employee details regarding coverage offered and accepted on a monthly basis, affordability test results, costs sharing structure, and reasons why certain employees were not offered coverage. To add to this complexity 6056 reporting requires specific IRS coverage codes.

What Happens If Your Business Doesn’t Comply

Failure to comply can cost you significant penalties! Here is what ACA penalties your business could face:
  • Failing to file a correct information return with the IRS will result in a penalty of $260 per form, not to exceed $3,193,000 in a calendar year.
  • Failing to provide a correct information return (1095 Form) to the individual for whom the form is reporting information can incur a $260 penalty per form, again not to exceed $3,193,000 per the calendar year.
  • You can also incur a $260 per form penalty if you are required to e-file but submit paper forms instead.

Warning: If you intentionally fail file these forms, the IRS can pull out the big guns and increase your per-statement and total penalties for your missing returns.

We Are Here to Help

If all of these requirements and forms seem overwhelming, use ACAWise as your full-service solution. Simply provide the information you have on your employees’ insurance coverage and our software will take care of the rest. Based on your information we will make sure the right codes are in the place before filing your ACA Forms.



Ensure Your Compliance Today!



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Monday, January 8, 2018

The Top 5 ACA Compliance Issues You Will See This Year

The future of the ACA is uncertain with the current white house administration
Despite the uncertain future of the Affordable Care Act Applicable Large Employers and Third Party Administrators should continue to finalize their 2018 ACA Forms. As you start to strategize your 2018 benefits programs, it is essential to keep up with new and ongoing compliance obligations necessary to keep your organization ACA compliant. Here are the top 10 ACA compliance issue you will see this year.

Top 5 ACA Compliance Issues You Will See This Year


1. Employer Shared Responsibility

Although the current administration is planning to eliminate or at least alter the Affordable Care Act most reconciliation rules will not allow for the repeal of the employer shared responsibility. The minimum value requirement for 2018 remains unchanged; however, affordability has decreased. An employer can only charge a full-time employee 9.56% of their household income for health insurance compared to 9.69% in 2017.

As you prepare your ACA forms for filing be sure, you will need all employee documents offering coverage and most importantly the consent waivers for that coverage. 

2. Cadillac Tax

All applicable employers should review their risk of the Cadillac tax even though the tax is not scheduled to begin until 2020. Read more about what the Cadillac tax is by clicking here. However, the uncertain American Health Care Act in its current form will delay the implementation of the tax until 2026.

The best way to review your risk of increased tax obligations is by identifying plans and benefit factors. Review your companies flexible spending account, health savings accounts, and health reimbursement arrangements to gain a better understanding of your future obligations. As an ALE or TPA, you should focus on pre-65 retiree plans and other high-cost plans. 

3. Preventative Services

As of January 2018, preventive services are now included as a requirement. These requirements include adult depression screenings, low dose aspirin for at-risk adults, syphilis screenings, and more.

4. Mental Health

Doctor and patient discuss the changes they can expect with ACA health insurance the next yearThis issue remains uncertain since the mental health parity was passed a year before the ACA and has been mostly overshadowed. However, with recent tragedies, this reform issue will not be going anywhere anytime soon. The new compliance deadline for 2018 is unclear but is a significant concern for all business owners. Your business should undergo a limited review and decide if your business requires a more in-depth dive to ensure overall mental and behavioral health.

5. Third Parties

Health plans continue to grow increasingly complicated more businesses are now turning to third parties to comply with ACA rules and regulations. However, employers must continue to monitor their plans. Consider including a protective provision such as anti-assignment and forum selection to limit how long the company is exposed to lawsuits, where you can be sued, and by whom you can be sued.

2018 ACA Filing Season

Unfortunately, we cannot predict the future of the ACA, but we can help your business remain complaint during the upcoming season. ACAwise is an all-in-one ACA reporting software designed to track and monitor your ACA compliance throughout the year. When it is time to e-file we will create Forms 1095 and 1094 on your behalf! Then you just review your forms and securely e-file directly with the IRS. We will even mail your recipients copies from our South Carolina based office the next business day.

Ensure Your Compliance Today!



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Thursday, January 4, 2018

Is Tax Season a Nightmare for Your Business?

Even if you have an in-house accountant, tax season can be a nightmare for any business. When you’re ready to outsource your tax compliance, you need to find a solution that makes quarterly business filings as easy as possible! TaxBandits is a full-service comprehensive solution for generating and e-filing quarterly and year-end tax forms in the most effective way possible. With their US-based customer support and an entire host of amazing features, you can say goodbye to tax season nightmares and hello to error-free IRS Form transmissions.


The deadline for W-2, Form 1099-MISC, and Form 941 is January 31st, 2018.


Is Tax Season a Nightmare for Your Business?


Experienced US-Based Support

Do quarterly 94x filings make you wake up in a cold sweat?! TaxBandits’ US-based support team is here to walk your business through the filing process. Call the support team Monday through Friday from 9AM to 6PM ETS at (704)684-4751 or reach them via live chat. They are also available for 24/7 email support at support@TaxBandits.com. (You know...for when the tax season nightmare awakens you from a deep sleep.)

Cloud-Based E-Filing

Easily complete your quarterly Form 941 employment tax filings with zero software downloads or monthly fees. Setup a free online tax filing account and access your data from any device. You can also edit your information and view filing statuses at anytime from anywhere. No credit card information is required to establish your account; you pay only when you are ready to transmit your forms to the IRS.

Safe and Secure IRS-Authorized

TaxBandits is an IRS-authorized e-filer, which means your sensitive business information is secure and all forms are directly transmitted the IRS. 

Bulk Upload Data and Built-in Error Checks

Inputting multiple recipient details can be a tedious task when e-filing. Fortunately, when you e-file with TaxBandits you have the option to upload all of your recipient's information in an instant with the bulk upload and smart upload feature.

Whether you are an Applicable Large Business or Third Party Administrator, your information is securely stored from year-to-year. Rest easy knowing that all filings undergo an extensive instant error check to ensure error-free filing.

E-File Today With TaxBandits

We understand that this month you have a lot of employment tax returns to file, but TaxBandits can help make the process quick and easy. They offer all the IRS forms your business needs and include transmittal forms with a step-by-step guide minus the tedious IRS terminology.




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Wednesday, January 3, 2018

Does my Business Need to File ACA Form 1095?


If you are new to the Affordable Care Act, you may have a few questions about 1095 forms. So what do ACA 1095 Forms mean for your business?

What do ACA 1095 Forms Mean for Your Business?


Overview: IRS 1095 Forms

The Affordable Care Act requires all employers with 50 or more full-time employees to provide affordable health insurance that meets a set federal minimum coverage and value. So to make sure employers and insurance providers remain compliant with ACA rules and regulations the IRS created Form 1095 to report the coverage offered throughout the year.

Variations of ACA Form 1095:

Form 1095-A (Health Insurance Marketplace Statement): This form is for individual taxpayers who receive insurance through the Health Insurance Marketplace, often referred to as the exchange.

Form 1095-B (Health Coverage): This form is mail to individuals by the insurance agency to report minimum essential coverage. The forms will detail the type of coverage, the month's covered and the individuals covered by the insurance plan.

Form 1095-C (Employer-Provided Health Insurance Offer and Coverage Insurance) Form issued by the employer to employees by businesses with 50 or more employees. This form will detail the coverage offered and whether or not the employee accepted the insurance.


File IRS Form 1095

When ALEs and TPAs file Form 1095 they must file one copy with the IRS for ACA compliance and must send another copy to their employee for their tax return. However, the recipient copy of Form 1095 is for the employee's records and is not required by the IRS along with their tax return.

Whichever Form 1095 is filed, a copy of Form 1094-B or C is sent to the IRS along with the complete 1095 return. Form 1094 can be seen as a cover sheet that summarizes the 1095 return it accompanies. Form 1094 does not need to be sent to the recipients of insurance, only to the IRS.

Do You Need Help Filing Form 1095?

Let ACAwise file all of your Form 1095s for your company. This all-in-one ACA reporting software designed to track and monitor your ACA compliance throughout the year. When it is time to file ACAwise creates your 1095 and 1094 forms for you! Then you just review your forms and securely e-file directly with the IRS. We will even mail your recipient copies from our South Carolina based office the next business day.
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Tuesday, January 2, 2018

2018 Coverage Codes You Need to Know for ACA Compliance


We know you are hard at work preparing for the ACA filing season, so we wanted to make sure you have all the 2018 coverage code information you need to stay ACA compliant. One of the most important aspects of the Form 1095-C is knowing how to indicate data about the coverage offered to employees. To do this your business will need to use Code series 1 and Code Series 2 in lines 14 and 16 of Form 1095-C. The IRS will review the codes used and make sure you are compliant with your ACA employer requirements. Here are the most common 2018 Coverage Codes you need to know for ACA compliance.

Most Common 2018 Coverage Codes You Need to Know for ACA Compliance


Form 1095-C: Line 14 Codes

The code used in line 14 will indicate to the IRS and recipients certain details about the healthcare coverage offered to that specific recipient. You will need a code for each month, and the code will indicate whether your business offered coverage that met minimum essential coverage (MEC), the minimum value (MV), and dependent coverage guidelines.

Most Common Series 1 Codes - Offer of Coverage
  • Code 1A. Qualifying Offer made to the employee, their spouse, and dependent(s), if any.
    • Qualifying Offers provide MEC at MV with the Employee Required Contribution being no more than 9.5% of the mainland single federal poverty line, as adjusted.
  • Code 1B. MEC offered at MV to the employee only.
  • Code 1C. MEC offered at MV to the employee and their dependent(s).
  • Code 1H. Coverage was not offered to the employee.

Form 1095-C: Line 16 Codes

In this section, you will explain in more detail what you have entered on line 14. Unlike line 14, line 16 can be left blank if one of the codes in series 2 apply to your employee's situations.

Most Common Series 2 Codes - Section 4980H Safe Harbor Codes and Other Relief for ALE Members
  • Code 2A. 
  • The employee was not employed during this month.
    • Do not use code 2A if the employee worked even one day during the month.
    • Do not use code 2A if the employee was fired.
  • Code 2B. 
    • The employee was not working full-time during this month.
    • The employee was not full-time and did not enroll in coverage.
    • The employee was full-time but coverage ended only because the employee resigned.
  • Code 2C. 
    • The employee enrolled in the coverage offered.
    • Do not use code 2C if code 1G is in line 14.
    • Do not use code 2C if the coverage did not meet MEC.
    • Do not use code 2C for months a terminated employee is enrolled in COBRA continuation coverage.

ACAWise Offers Automatic Code Generation

If learning all of the needed codes seems overwhelming, use ACAWise’s automatic code generation feature to simplify your ACA filing. Simply provide the information you have on your employees' insurance coverage and offered and our software will do the rest. Based on the information given we will make sure the right codes are in the place before filing your Form 1095-C.

Take advantage of our automatic code generation today!

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