When it comes to the ACA reporting process, there are many moving parts. Whether you have been required to file and distribute ACA Forms since the Affordable Care Act originated, or if this is the first year you meet the requirements, it is a complex task.
The IRS requires that mandated ACA reporters must file Forms 1094 and 1095 and distribute copies of the forms to their recipients and employees to maintain their IRS compliance.
Here is some helpful information to help you go into your 2021 ACA reporting with a clear plan and understanding of what is needed.
Reasons for ACA Reporting Confusion
Determining whether or not your business is required to file can be a big source of confusion.
The IRS requires businesses that employ 50 or more full-time and full-time employees to offer affordable health insurance coverage and report it to the IRS. These businesses are referred to as Applicable Large Employers (ALEs). Some businesses may cross this threshold and not realize it.
Why? Mainly because of the term “full-time equivalent”. This means that if your business has several part-time employees, their hours factor into the equation. For example, three part-time employees working a combined total of 30 hours a week or 120 hours a month would count as one employee.
Not sure if your business classifies as an ALE? Check your status using our free tool. Just click here to get started!
Know your Deadlines
This year, in particular, there has been some confusion regarding the ACA deadlines, specifically the recipient copy deadline. As of now the IRS proposal for extending this deadline remains unfinalized.
For more information on this, check out this blog.
Here are the deadlines for tax year 2021 reporting:
March 02, 2022 (Recipient copy deadline)
February 28, 2022 (Deadline to file paper copies with the IRS)
March 31, 2022 (Deadline to e-file with the IRS)
With the unclear situation of the IRS extending the recipient copy deadline, it is important that you don’t put your ACA reporting on the back burner. If you wait until January to begin, this will only add to the stress of your other year-end filing requirements!
We offer a solution to fit the needs of your business, whether you’re an ALE, TPA, government agency, or even a school district. Here are our services!
Do you have the codes for your employees but do you want an easy, streamlined way of e-filing your forms? Then the ACA Core services offered by ACAwise are exactly what you are looking for.
You can upload your employee information to your ACAwise account, we can accept your data in a variety of forms for your convenience. Once we have your data, we will validate it using TIN matching to ensure that all of your employee TIN’s are correct.
We also validate your employees’ addresses against the USPS database to ensure that your recipient copies make it to the correct destination. Now, we generate your copies and share them for your review. Now, all that’s left is to e-file your ACA 1095 Forms with the IRS and mail out your recipient copies to your employees.
If you have no idea where to start with your ACA codes then this package is the best option for your business. Your employee’s payroll data and benefits information is all that ACAwise needs to help you generate the codes for your Form 1095-C.
With ACA Elite, You get all the benefits of the Core Services, plus we create all of your codes for you. No matter which package you choose, the ACAwise team will be there at every step of the process!