The Affordable Care Act
Below you will find information about ACA reporting for 2020. EZ Checks does provide ACA reporting forms here for your accounting software.
What are the filing requirements for the Affordable Care Act (ACA) for 2020?
Affordable Care Act (ACA) reporting is mandatory for calendar year 2020 and is the responsibility of the employer. The purpose of this new year-end reporting requirement is to report healthcare coverage information to employees and the IRS to verify that the individual has met the requirements of the Affordable Care Act which states that each individual must have minimum essential healthcare coverage. The reporting requirement consists of two types of forms and their related transmittals.
Am I required to file?
Any employer with 50+ employees must file ACA 1095 information, including those that do not offer healthcare insurance. If you have less than 50 employees AND you self-insure, then you are also required to file.
What are the available form options?
Form 1095-C must be issued by employers with 50+ full time employees (including full-time equivalent employees) to employees and to the IRS. Filers may submit multiple 1095-C batches to the IRS.
Form 1094-C is the transmittal form that must be filed with form 1095-C. This transmittal may have up to three pages which must also be included when e-filing each batch to the IRS.
Form 1095-B must be issued by a self-insured employer with less than 50 full-time employees (including full-time equivalent employees), or by the insurer to employees and to the IRS as proof of healthcare coverage.
Form 1094-B is the transmittal form that must be filed with form 1095-B.
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What are the tax filing deadlines?
February xx, 2021 - Paper filing due to the IRS (Date TBD by IRS)
March xx, 2021 - Statements due to recipients/employees (Date TBD by IRS)
March xx, 2021 - E-file due to the IRS (Date TBD by IRS)
How do I determine the number of full time employees I have when I also employ part-time employees?
Use the full-time equivalent employee (FTE) calculator to count the number of FTEs you have by visiting HealthCare.gov. You will also find more detailed information on who to include and not include in your full-time employee calculation.
Full-time employees are those who worked on average 30 hours or more a week for more than 120 days in a year – or the number of employees you expect to work these hours. Part-time employees count towards determining your number of full-time employees. Part-time employees are those who worked on average less than 30 hours per week, but more than 120 days per year.
What information will I need for my ACA reporting?
This information includes:
- Total employee count and full time employee count
- Employee ID, name, address
- Health coverage offered
- Employee share of the monthly premium (for lowest-cost self only minimum insurance)
- Months the employee was enrolled in employee coverage
- Affordability safe harbor information
- If self-insured, information about covered individuals in plan
Does my software handle reporting ACA federal and recipient information?
Many payroll software companies are programming for ACA reporting. Check with your current software provider for more details.
How do I file the required forms to the IRS?
Corporations with less than 250 returns may file on printed forms. The IRS requires all corporations with 250 or more returns a year to file electronically.
How do I provide this required information to my employees?
ACA forms can be mailed in the same envelope as W-2 forms. Many payroll software companies are programming for ACA reporting. Check with your current software provider for more details.
Are the 1094 and 1095 forms submitted to IRS required to be printed in red drop out ink?
Are taxpayers required to attach a copy of the 1095 to their income tax return?
Will the 1094 and 1095 forms be scanned by IRS?
Are the 1094 and 1095 forms that are submitted to the IRS required to exactly match the official form?
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The material contained herein is for informational purposes only and does not constitute tax advice. Please consult with your tax adviser with regard to your personal tax situation.