Frequently Asked Questions (FAQ)

Browse our extensive FAQ archive to access valuable resources for accurately completing forms and addressing common IRS-related errors using our straightforward, step-by-step tutorials.

What is Employer Shared Responsibility?

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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

What is a Common Law Employee?

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Common Law Employee - Work Meeting

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

24 California Pay Data Reporting Examples and Scenarios

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California Pay Data Reporting Examples and Scenarios - Landscape image of beach

The California Civil Rights Department (CRD) requires that certain employers report pay and hours-worked data by establishment, job category, gender, race, and ethnicity to the CRD annually. The Pay Data Reporting is required under CA Government Code section 12999, amended by Senate Bill 1162. Due to the nature of this reporting, we’ve compiled a comprehensive … Read more

Combined Federal/State Filing Program – Comprehensive List

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In addition to IRS filing requirements, many states have Form 1099 Requirements as well. The Combined Federal/State Filing (CF/SF) Program was created and implemented to make filing certain information returns easier and simpler for the filer. What is the Combined Federal/State Filing Program? The CF/SF program was established to simplify information returns filing for payers. … Read more

What is a Transfer Agent? – IRS TY 2022

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Bank Building - Transfer Agent

When completing your year end filings, you may find that the summary forms ask you to name the Payer’s Transfer Agent, if applicable. In many cases, you can find the this information under the investor relations section of a company’s website. Transfer Agent This can be a trust company, bank, or other institution assigned by another … Read more

Understanding Information Returns – Comprehensive Guide 2022

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An Information Return is a tax form used to report to the federal government, non-payroll related payments made from a business, agency or person to another person or company. You also must furnish copies of the information returns to recipients for payments reported. Failure to file the information returns by specified due dates could result … Read more

What is a Full-Time Employee?

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When beginning your ACA filing, it is important to know who is considered a full-time employee. Determining who is considered a full-time employee may be more difficult than it initially seems. For purposes of Employer Shared Responsibility provisions, the IRS defines a full-time employee as such: “[A]n employee is a full-time employee for a calendar … Read more

No Statute of Limitations for IRS Assessment of ESRP (ACA)

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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). No Statute of Limitations The IRS published a Memo on February 24, 2020 regarding assessments of an ESRP under Section 4980H … Read more

What is Employer Shared Responsibility? – IRS TY 2019

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Employer Shared Responsibility - Man writing in notebook

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. Employer Shared Responsibility The Affordable Care Act’s employer shared responsibility provisions require certain employers (called applicable large employers or ALEs) to offer affordable … Read more

What is Employer Shared Responsibility? – TY 2018

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Employer Shared Responsibility

The Affordable Care Act’s employer shared responsibility provisions require certain employers (called applicable large employers or ALEs) to offer affordable health coverage to at least 95% of their full-time employees and their dependents, or otherwise make an employer shared responsibility payment to the IRS.

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