ACA – Important Reporting Extension for Employers
Last week, the Internal Revenue Services (IRS) and the U.S. Treasury announced an extension of some of the Obamacare reporting requirements so that employers have more time to meet their obligations.
Employers have been given an extension from February 1, 2016 to March 31, 2016 to allow them to get health information statements to their employees. This is especially important to those employers who use third-party vendors to process the information.
Employers now have until May 31, 2016 (if not filing electronically) and until June 30, 2016 (if filing electronically) to file the following with the IRS: 2015 Form 1095-B Health Coverage (including the 1094-B transmittal), and 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage (including the 1094-C transmittal). This extension also applies to health care insurance carriers who face the same requirements.
The Treasury Department said that the extension for reporting is not a delay in the law’s requirements, rather it simply gives employers more time to complete and file the information. This data is needed to enforce the requirement that every individual carry health care insurance, and essential to enabling the IRS to determine subsidies for premiums to those who qualify. The IRS will also use this information to assess penalties to employers who fail to provide coverage to employees, and penalize individuals who fail to purchase health insurance coverage.
Employers with 50 or more employees: The requirement to offer coverage to employees takes effect on January 1, 2016 for employers with between 50 and 99 employees. For those employers with 100 or more employees, the requirement began in 2015, after a one year delay.