It is important to know what information to gather before you begin the ACA reporting process. We’ve identified the following 7 key topics that may help with completing your ACA filing in our Getting Started Checklist.
First, you will need to identify all common law employees. According to the IRS, anyone who performs services for you is your employee if you can control what will be done and how it will be done.
Next, you’ll want to identify full-time employees for each month. The IRS is very specific regarding how it counts full-time employees.
Verifying your employees’ TINs prior to filing is crucial to avoid having to re-file your forms, issue corrected forms to employees, and avoid potentially hefty fines from the IRS.
Beginning in Tax Year 2016, an employer must offer at least 95% of full-time employees affordable coverage.
You will need to determine if the coverage offered is affordable using 1 of the 3 available safe harbors.
Probably one of the easier parts of the ACA preparation process, you will need to make sure your employees have a good contact number to reach you if they have questions about their Form 1095-C.
Self-insured plans need to identify covered individuals (employee, spouse, and their dependents) and their social security numbers. A date of birth will work in lieu of a social security number if you’ve made a reasonable attempt to gather these SSNs.
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