Introducing Our Free ACA E-filing Service for Small Businesses

As part of our continued commitment to small businesses, we are proud to announce the launch of our FREE ACA e-filing service for select employers.

Beginning today, employers with up to 75 full-time (or full-time equivalent) employees can use BoomTax to file their IRS tax forms 1094-C and 1095-C electronically with the IRS for the 2016 tax year for FREE.

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No Statute of Limitations for Assessment of ESRP (ACA)

Have you ever asked yourself: “Do I have to complete my ACA filings for previous tax years?” The answer is YES. There is no statute of limitations in assessing Employer Shared Responsibility Payment (ESRP).

The IRS published a Memo on February 24, 2020 regarding the statute of limitations for assessment of an ESRP under Section 4980H. The Memo makes it quite clear that there is none in regards to assessment of ESRP.

The Office of Chief Counsel stated that it is not possible for the IRS to determine the ESRP solely using Forms 1094-C and 1095-C. Subsequently, the filing of these returns does not fall under the statue of limitations under Section 6501 (a).

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Employer Shared Responsibility

According to the IRS, “anything that an ALE is liable to pay under section 4980H is called the Employer Shared Responsibility Payment (“ESRP”).” The IRS determines the ESRP by collecting information from the ALEs and their FTEs.

If you are an ALE and do not offer affordable health coverage to at least 95% of your full-time employees, you may be subject to one of two employer shared responsibility payments.

An ALE member will owe the first type of payment if:

  • ALE member failed to offer Minimum Essential Coverage (MEC) to at least 95% of its full-time employees (FTEs) and their dependents.
  • AND if at least one FTE receives a premium tax credit for purchasing coverage through the Marketplace.

If an ALE member fails to offer MEC that is affordable to their FTEs, the ALE member may be subject to the second type of ESRP.

An ALE member could owe the second type of payment if:

  • The MEC the employer offers to the employee is not affordable.
  • The MEC the employer offers does not provide minimum value.
  • OR, The employee is not one of the ‘at least 95% of employees’ that is offered MEC.

Part-time and full-time equivalent employees do not factor in to the calculation of ESRPs.

Please find additional information on related topics below:
– What is Employer Shared Responsibility?
– What is IRS Letter 226-J?
For more information, please contact BoomTax Support:

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DC ACA Health Mandate State Reporting

It is important to realize, the new DC ACA health mandate for residents is here! 1094/1095B and 1094/1095C series forms requires submission to the state. Sooner or later, DC ACA health mandate will require action and BoomTax wants to help you! Brand new state policies does not signify uncertainty. Below are some common questions and concerns employers have. Additionally, why employers should turn to BoomTax for ACA filing!

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New DC ACA health mandate?

The DC ACA health mandate requires all DC residents have a minimum essential health care coverage. Taking affect in 2019, tax year 2019 is the first time employers must take this into consideration.

What form type requires submission?

Starting tax year 2019, District of Columbia requires employers to submit a state filing for 1094/1095B and 1094/1095C series forms.

Specifications for employers to file?

The DC ACA health mandate requires employers who cover more than 50 employees with at least one individual residing in DC, must file submission. Employers do not meet specifications if, the employee commutes to DC, but does not reside there. Therefore, no submission required.

When is the deadline to file for DC ACA health mandate?

The first submission deadline for employers to file is June 30th 2020.

Can employers send the same file to federal and state?

No employers cannot. Even though the contents of the file are the same, the District of Columbia has adapted their own format for state E-filing which differs from the file format the IRS accepts. After all, this is a completely new process and quite difficult to interpret the specifications of their file format and rules.

Complexity of DC ACA health mandate format.

As previously mentioned, the District of Columbia has decided to come up with their own format for accepting state E-filing. Unfortunately, the format is very different and the complexity is much higher than the standard IRS file. Included is a downloadable excel template from DC. In short, why should employers be tasked with learning these extensive new rules? Below are some key points to take into consideration.

  • Complicated file format
  • Adapted pipe delimited file
  • Lengthy data entries for employees with various covered individuals
  • Over 600 fields of required data for each employee
  • Brand new state specific rules
  • Different format and rules than IRS

Give BoomTax the task!

When employers sign up with BoomTax, the process is very simple and hands off! No need to worry about file formats, complex rules, and interpreting state jargon. BoomTax will do all the hard work for you! Not to mention, our interface is a simple drag and drop for importing data or take advantage of our premade excel spreadsheet. After data upload, hit the big E-file button at the top and that’s it! Don’t worry, BoomTax sends employers real-time updates every step of the way. Given these points, don’t wait! Employers can upload data now and upon systems opening up for DC, BoomTax will send your state filing.

Does BoomTax offer other state filings?

Yes we do! Currently BoomTax supports District of Columbia and New Jersey state E-filing. Without delay, BoomTax is happy to support this new feature on the first year! BoomTax expects to expand further into state E-filing with additions of Vermont, Rhode Island, and California upon release of their specifications.