The IRS has released an updated Form 1095-C draft for Tax Year 2020. The new draft has a few major changes you should know about. This draft will help employers prepare for 2020 Affordable Care Act (ACA) Reporting. A finalized version of the form should be released by early 2021.Continue reading Form 1095-C Draft for Tax Year 2020 Released by IRS
It is important to realize, the new DC ACA health mandate for residents is here! 1094/1095B and 1094/1095C series forms requires submission to the state. Sooner or later, DC ACA health mandate will require action and BoomTax wants to help you! Brand new state policies does not signify uncertainty. Below are some common questions and concerns employers have. Additionally, why employers should turn to BoomTax for ACA filing!
New DC ACA health mandate?
The DC ACA health mandate requires all DC residents have a minimum essential health care coverage. Taking affect in 2019, tax year 2019 is the first time employers must take this into consideration.
What form type requires submission?
Starting tax year 2019, District of Columbia requires employers to submit a state filing for 1094/1095B and 1094/1095C series forms.
Specifications for employers to file?
The DC ACA health mandate requires employers who cover more than 50 employees with at least one individual residing in DC, must file submission. Employers do not meet specifications if, the employee commutes to DC, but does not reside there. Therefore, no submission required.
When is the deadline to file for DC ACA health mandate?
The first submission deadline for employers to file is June 30th 2020.
Can employers send the same file to federal and state?
No employers cannot. Even though the contents of the file are the same, the District of Columbia has adapted their own format for state E-filing which differs from the file format the IRS accepts. After all, this is a completely new process and quite difficult to interpret the specifications of their file format and rules.
Complexity of DC ACA health mandate format.
As previously mentioned, the District of Columbia has decided to come up with their own format for accepting state E-filing. Unfortunately, the format is very different and the complexity is much higher than the standard IRS file. Included is a downloadable excel template from DC. In short, why should employers be tasked with learning these extensive new rules? Below are some key points to take into consideration.
- Complicated file format
- Adapted pipe delimited file
- Lengthy data entries for employees with various covered individuals
- Over 600 fields of required data for each employee
- Brand new state specific rules
- Different format and rules than IRS
Give BoomTax the task!
When employers sign up with BoomTax, the process is very simple and hands off! No need to worry about file formats, complex rules, and interpreting state jargon. BoomTax will do all the hard work for you! Not to mention, our interface is a simple drag and drop for importing data or take advantage of our premade excel spreadsheet. After data upload, hit the big E-file button at the top and that’s it! Don’t worry, BoomTax sends employers real-time updates every step of the way. Given these points, don’t wait! Employers can upload data now and upon systems opening up for DC, BoomTax will send your state filing.
Does BoomTax offer other state filings?
Yes we do! Currently BoomTax supports District of Columbia and New Jersey state E-filing. Without delay, BoomTax is happy to support this new feature on the first year! BoomTax expects to expand further into state E-filing with additions of Vermont, Rhode Island, and California upon release of their specifications.
We’ve created Excel import spreadsheet templates to help you easily upload all of your 1095-B and 1095-C, 1099, and W-2 data. These templates are identical to the official IRS forms so that you can enter the information just as you would on paper. Continue reading Import Spreadsheet Format Guidelines for Tax Year 2019