The latest in ACA reporting, news, and preparation tips to satisfy your employer reporting requirements. Find deadlines, checklists, state requirements, and 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
Massachusetts has some additional health insurance filing requirements that aren’t covered by simply completing your federal ACA filing. All MA residents who has health coverage should receive a Form MA 1099-HC and these forms should also be filed with the state. What is Form 1099-HC? Form MA 1099-HC is a tax document that shows proof … Read more
Before you begin to prepare your ACA reporting, it’s important that you know what information you need in preparing Form 1095-C. We’ve compiled the following 7 key topics in our Form 1095-C Guide that may help you to correctly and timely complete your filing. What’s new for Form 1095-C? Beginning in Tax Year 2023, the … Read more
Completing 1095-C forms can be confusing, but we’re here to make it simple with this list of common 1095-C coverage scenarios and examples. We’ve even created an interactive code helper tool to help make ACA filing easier. Common 1095-C Coverage Scenarios: Full-Time Employee, Enrolled All 12 Months, qualifying offer In this example, the employee (EE) … Read more
PCORI fees are imposed by the IRS through the Affordable Care Act (ACA) and are used to fund the Patient-Centered Outcomes Research Trust Fund. Patient-Centered Outcomes Research Trust Fund fees, or PCORI fees, are imposed by the Internal Revenue Service (IRS). The PCORI fee is assessed on issuers of certain health insurance policies and self-insured … Read more
One of the first steps in preparing for ACA reporting is identifying all of your common law employees. The IRS defines an employee as anyone who performs services for you if you can control what will be done and how it will be done. This includes when you have given the employee freedom of action. … Read more
The first step in preparing your Forms 1095-B is identifying all responsible and covered individuals to be reported. Responsible and Covered Individuals Who is the Responsible Individual? The responsible individual is the recipient named at the top of the Form 1095-B. Generally, this is the person who would be liable for the individual shared responsibility … Read more
Perhaps the most intimidating (and challenging) part of Form 1095-C codes for new filers is determining what they mean and how to use them for Box 14 and 16 of the 1095-C. The use of short 1 digit, 1 letter codes to express coverage, full-time/part-time status, and affordability is cryptic at best, so we’ve compiled … Read more
The new ACA Information Returns (AIR) Schema and Business Rules for tax year 2024 and ACA Assurance Test System (AATS) Scenarios have been released. AIR Schema and Business Rules Version 1 of AIR schema and business rules have been posted to the IRS AIR website. This is for forms 1094-B, 1095-B, 1094-C and 1095-C. This … Read more
Filing Penalties for ACA forms can happen for a variety of reasons, including forgetting to file or not offering coverage. With the increase of tax enforcement from the IRS due to the Inflation Reduction Act, filers need to be sure that they are up to date with all ACA terms and in compliance with all … Read more
Perhaps one of the easiest steps of the ACA preparation process is ensuring accessibility for your employees to contact you or an agent in the event that they have questions regarding their Form 1095-C. Make sure to provide employees with a working call number or other contact option that is reachable during business hours. The … Read more
What is IRS Letter 5699? IRS Letter 5699, Missing Information Return Form 1094/1095-C Letter, is used to make initial contact with the employer. This letter notifies the employer that it may not have filed for the specified tax year, and/or that the employer may not be in compliance because the IRS has yet to receive … Read more