We’d like to thank everyone who attended our webinar about the reporting requirements of the Affordable Care Act (ACA) on October 27. There was a lot of information, and some attendees had follow-up questions, so we decided to put some of them together in a Q&A for you.
If you’re still looking for some basic answers about the ACA and what forms you’ll need come January, check out our previous post.
Q: What is the reporting deadline?
The deadline for the ACA forms is the same as for W-2s: recipients by January 31, paper filing by February 29 and filing electronically must be done by March 31.
Q: Do ACA forms need to be filled out for employees terminated in the year?
Yes, the employer is responsible for filing ACA forms for employees terminated within the year. Essentially anyone who was employed and insured at any time will have to be reported.
Q: I am confused as to who gets a 1095-C and who doesn’t. Does the IRS get copies of all employees, but only the full-time employees get a copy? Does an employee who worked 130 hours or more in any one month of the year get a tax form?
The people who receive the 1095-C forms are the employers that have at least 50 full-time employees. The people who need to file the 1095-B are health insurance carriers as well as self-insured employers who have less than 50 employees.
Here is the IRS’ Reporting Requirements for Applicable Large Employers (50 or more employees). This has a general breakdown of the requirements and who is qualified under this law. It’s broken down into three categories (full-time employee, full-time equivalent employee and an aggregated group).
Yes, a full-time employee who works at least 130 hours per month and has health care coverage must receive a 1095-C—if they fall under the ALE category.
When filing the 1095-C there are two forms to focus on (if you are not filing electronically and sending hard copies to the IRS). The first form is the landscape version. This is the IRS copy. This is the only copy that they will accept. If you are not filing electronically, they will have to receive a copy for each employee. The second form is the employee/employer copy. Each employee who has had coverage needs to receive one of these forms. The process portion is essentially the same as the W-2.
Q: We want to be able to get a comprehensive overview of the requirements for Applicable Large Employers, including how to apply for and use the AIR system for electronically filing the forms, and the application process to get a Transmitter Control Code.
We would again refer you to the ACA Reporting Requirements for Applicable Large Employers. This gives a break a brief breakdown of the requirements.
As far as the AIR system for electronically filing the forms here is a link from the IRS website that covers that information. If you click on the “Business Rules Version PDF and CSV Formats and Error Codes” section, that should give you the information you’re looking for.
Q: Is your software able to assist with the monthly reporting or only the yearly?
Our software actually does not do any reporting, but you can use the software a couple of ways: Customers can import their files from their payroll system into the software or if they prefer to process them manually there is that option as well. The program does give you the option to e-file.
Have more questions? Contact Relyco today!