“Applicable Large Employers” face ACA reporting requirements for 2015
Posted On: 11-4-2015 | Posted By: Mark Gingrich, CPA, J.D.
The Affordable Care Act (ACA) imposes significant information reporting responsibilities on large employers for the 2015 calendar year. Have you determined whether these new reporting responsibilities apply to you? If they do apply, we want to help to make sure you have a plan in place to comply.
These new information reporting responsibilities apply to you if:
- Your company is an “applicable large employer” (ALE), meaning either:
– Your company had, on average, at least 50 full-time employees (including full-time equivalent employees) during 2014, or
– Your company is part of a controlled group of companies that had, in the aggregate, an average of 50 or more full-time employees (including full-time equivalent employees) during 2014; or
- Your company has a self-funded insurance plan (even if you employ fewer than 50 full-time employees).
Companies could be in a controlled or affiliated service group if they have common owners, provide services for each other or work together to provide services to third parties.
The new information reporting system is similar to the current Form W-2 reporting system in that an information return (Form 1095-B or 1095-C) will be prepared for each applicable employee, and these returns will be filed with the IRS using a single transmittal form (Form 1094-B or 1094-C). Affected employers must file these forms annually and provide a copy to most employees by January 31st. Employers may face a $200 penalty per form if the employer fails to timely file the returns or to furnish statements to employees.
Applicable large employer group members must prepare a Form 1095-C for each full-time employee regardless of whether the employee is participating in an employer-sponsored group health plan. In addition, the employer will complete a Form 1095-C for each part-time employee who is enrolled in the employer’s self-insured health plan. The employer need not prepare Form 1095-C for part-time employees not enrolled in the plan.
Please contact your WK advisor at (573) 442-6171 or (573) 635-6196 to discuss your specific circumstances. We are here to help you with these new requirements including preparing the forms on your behalf. If you may need our assistance to complete the new forms, please let us know as quickly as possible. These new filing requirements are complex and include monthly details, so—if you have not already—the time to begin the data collection process is now.