Good Grief! We Got Some Relief! But Now What? ACA Reporting and the IRS.
It’s not that surprising the IRS has postponed the deadlines of some of the reporting requirements for large employers under the ACA. It is of course, welcomed because the reporting can be confusing and daunting.
The due dates for both furnishing to individuals proof of insurance coverage (Form 1095-B and 1095-C) and the group filing with the IRS, for the 2015 ACA that apply to applicable large employers under sections 6055 and 6056 of the Internal Revenue Code have been extended
Yippee! Now we have a little more time to procrastinate or plan depending on what camp you are in.
Here are the 2015 Deadline Extensions…drum roll please.
For furnishing to individuals the 2015 Forms 1095-B and 1095-C, the deadline has been extended from February 1, 2016, to March 31, 2016, AND
For filing with the IRS the 2015 Forms for employers 1094-B, 1095-B, 1094-C, and 1095-C, from February 29, 2016, the deadline has been extended to May 31, 2016 (if not filing electronically) and from March 31, 2016, to June 30, 2016 (if filing electronically). So if you’re a procrastinator, consider filing electronically.
So, forms to your employees need to go out at the end of March and then you have till May or June depending how you file for the rest of the reports to the IRS.
Okay now what? How do you get a handle on this and track all of your employee data so that you can file on time and accurately?
Well, we talked to an expert to get some answers. Rebecca Yinko, Managing Partner at Payroll Solutions in Madison, WI. says, “Employers should now be looking at what their options are for tracking employee data so that they can accurately report to the IRS. It is best to consult with a tax advisor to get advice for identifying the best measurement period to use.”
You can create an excel spreadsheet on your own to track your employee information or you can purchase software and advice to help you do it. Yinko says, “Make sure if you are going to do this yourself, you do the right calculations to back up your numbers.”
Some employers are opting to integrate this reporting with their payroll system and track insurance coverage cost and eligibility that way. There is usually a cost associated with that. Yinko says, “Beware of FREE, it may be better to pay for and rely on a team of people to give you the right advice.”
The extensions for the ACA information reporting requirements apply for calendar year 2015 only and have no effect on the requirements for other years or on the effective dates or application of the ACA “pay or play” provisions. In view of these extensions, the IRS rules regarding automatic and permissive extensions of time for filing information returns and permissive extensions of time for furnishing statements will not apply to the extended due dates. Employers or other coverage providers that do not comply with these extended due dates will be subject to penalties.