The Affordable Care Act (ACA) has really been put through the ringer this year. However, despite what’s been going on in Washington, D.C., the IRS has indicated that they will be pushing forward with enforcing ACA compliance for Tax Year 2017.
Throughout the year, they have been updating their ACA Information Center with the new tax year forms and instructions, and guidance on reporting. Their most recent page update included the new requirement for individual taxpayers to indicate their health care coverage status on their tax returns before acceptance.
Which employers are subject to ACA compliance?
The IRS requires that employers with 50 or more full-time or full-time equivalent employees must provide coverage under the Affordable Care Act.
The IRS defines a full-time employee as such:
“[A]n employee is a full-time employee for a calendar month if he or she averages at least 30 hours of service per week. Under the final regulations, for purposes of determining full-time employee status, 130 hours of service in a calendar month is treated as the monthly equivalent of at least 30 hours of service per week.”
See our Step-by-Step Guide for Tax Year 2017 ACA Reporting for more information on how to comply with IRS requirements.
What are the deadlines for ACA reporting?
The IRS deadlines for Tax Year 2017 ACA Reporting are as follows:
- February 28, 2018 – Paper filing of Form 1094-C with 1095-C copies must be submitted to the IRS.
- March 2, 2018 – 1095-C copies must be submitted to employees.*
- April 2, 2018 – Electronic filing of Form 1094-C with 1095-C copies must be submitted to the IRS.
*UPDATE: Since the original publishing of this post, the IRS has announced an extension to the original 1095-C recipient copy distribution deadline of January 31. This extension is automatic and does not require any contact to the IRS. For more information, please refer to our blog post regarding the deadline extension.
What are the penalties for non-compliance?
Employers who miss the IRS filing deadlines or who file forms with inaccurate information may be subject to penalty fines of up to $260 per filing.
Employers who fail to timely distribute employee copies of Form 1095-C may also face penalty fines of up to $260 per filing.
How can I submit my ACA filing?
BoomTax was created to provide employers with a simple solution for information reporting. We focus on keeping things simple! That means no overwhelming tax forms, no complicated jargon, and no boring software.
With BoomTax, you can easily upload your data via XML or Excel, and submit your 1094-C and 1095-C forms within a few clicks. We will walk you through every step of the process. Our simple step-by-step approach allows you to easily complete your IRS ACA reporting. There is no need to learn any complicated software or complete specialized training.
For more information regarding ACA compliance, visit the official IRS ACA webpage. Or check out our other ACA blog posts to learn more:
- What is Employer Shared Responsibility?
- Self Insured Plans
- ACA Compliance Requirements
- Common Law Employees
- What is a Full-Time Employee?
- Secure Access – New IRS Login Portal for e-Services
- Penalties for ACA and 1099 Reporting
- ACA Reporting Deadlines
- Prepare for ACA Reporting
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.