The latest in ACA reporting, news, and preparation tips to satisfy your employer reporting requirements. Find deadlines, checklists, state requirements, and more.
Tax Year 2024 is coming to a close, which means that the filing season of 2025 is upon us! We’ve created this guide, so you don’t miss the 2025 ACA deadlines. Basic Information When each tax year, or calendar year, comes to a close employers must ensure that they meet all IRS tax requirements regarding … Read more
One of the easiest steps of preparing Form 1095-B is to gather the information of the 1095-B issuer. This will include their TIN information and a point of contact for any recipient questions. Issuer TIN Like recipient TIN information, issuer TINs should be verified before the filings are submitted. Tools such as TINCorrect can help … Read more
As more states begin to pass their own individual mandate, employers are understanding that meeting the Affordable Care Act’s reporting requirements is a complex process which includes overwhelming terminology. We’ve gathered a glossary of the most essential ACA terms you’ll need to know before filing. Common ACA Terms ACA Information Returns Program (AIR) Under the ACA, … Read more
Health coverage affordability is an important part of complying with the ACA’s Employer Mandate. Failing to comply can result in penalties and fines. So, how do employers determine affordability? There are three affordability safe harbors that can be used: Form W-2, Federal Poverty Line (FPL), and Rate of Pay. ACA Employer Mandate The ACA Employer … Read more
It is important that you know what information you need before you begin preparing form 1095-B for ACA reporting. We’ve compiled the following 4 key topics in our Form 1095-B Guide that may help you to correctly and timely complete your filing. What’s new for Form 1095-B? Beginning in Tax Year 2023, the electronic filing … Read more
In March 2010, Congress passed a comprehensive health care reform law known as the Affordable Care Act. What is the Affordable Care Act (ACA)? The Affordable Care Act is a comprehensive health care reform law that was passed in March 2010. Alternatively, known as ACA, Patient Protection and Affordable Care Act (PPACA), or Obamacare. It’s … Read more
On July 12, 2024, the IRS released the draft ACA Forms 1095-B and 1095-C for the upcoming 2024 tax year. There are no major changes for the year. Although there are no significant changes, it’s still important to review and become familiar with the forms before the tax year begins. Draft ACA Forms 1095-B and … Read more
ACA reporting can be very complex, but if you can use the Qualifying Offer Method then it may be a lot simpler! What is a Qualifying Offer? A Qualifying Offer is an offer that meets the following criteria: What is the Qualifying Offer Method? If the employer reports using the Qualifying Offer method, then they … Read more
If you e-file your ACA forms to IRS and later realize that you included an additional record by mistake, there is a way to fix it. Although, the IRS doesn’t have a straightforward way to void a 1095-C once it’s been filed, it can be corrected. So this raises the question: Is there a way … Read more
One of the most common types of ACA e-filing errors returned from the IRS AIR system are TIN validation errors. What causes a TIN Validation Error? This will happen when the last name and SSN submitted in your filing doesn’t match what the IRS has on file, and this can happen for the following reasons: How … Read more
Affordable Care Act (ACA) reporting can be a challenging process on its own, but with the addition of ACA State Requirements and Individual Mandates, the ACA filing process has only grown in complexity. What is an Individual Mandate? The Individual Mandate is an ACA provision that requires individuals to purchase certain coverage unless they’re eligible … Read more
The IRS sends out Letter 1865C to employers if they cannot process some of their ACA forms. This can be for a variety of reasons, including improper format, incorrect forms, and typos among other things. What is IRS Letter 1865C? The IRS Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing, is a … Read more
Health insurance issuers and carriers must file Form 1095-B for most health coverage. When completing Form 1095-B, you will need to identify the Origin of Health Coverage being reported on Line 8 of the Form 1095-B. IRS Form 1095-B, Line 8 The Origin of Health Coverage is indicated using one of the seven IRS designated … Read more
The IRS has outlined two ACA measurement methods that can be used in determining employee status for ACA purposes. These are the Monthly Measurement Method and Look-Back Measurement Method. ACA Employer Mandate It’s important that Applicable Large Employers (ALEs) ensure that they meet all of the requirements outlined by the ACA Employer Mandate. This means … Read more
Under the Affordable Care Act (ACA), the federal and state governments, employers, and insurers were given a shared responsibility to improve the availability, quality, and affordability of health coverage in the US. The Affordable Care Act’s employer shared responsibility provisions require certain employers (called applicable large employers or ALEs) to offer affordable health coverage to … Read more