Guidelines for Employer Reporting Under the ACA

Important guidelines for reporting under the Affordable Care Act



Complying with certain regulations is vital in any institutions since it leads to the right procedures of doing some activities. Some provisions are set aside by bodies such as the healthcare givers, and certain rules must be followed to fulfill the requirements of the regulation. Applicable large employers (ALE) are required by the Internal Revenue Code to give details that concern their employees on the health plan that they offer to their workers in a similar manner as they report the wages on Forms W-2.

IRS issued forms 1094-C which contains the details of the ALE’s health plan in summary to the IRS and Forms 1096-C that describes the applicable large employers’ to employees that are employed full time and the people who are enjoying the benefits of the group health plan along with the instructions to fill the forms.

The body also released final Forms 1094-B and 1095-B that are used to give details about health insurance beneficiaries and those who have private plans to fund themselves as required by the Code section 6055. It seems the forms are complicated, and the employers and other relevant users of the types will find difficulty in filing them.


ACA Employer Responsibilities

Who is responsible for filling the forms?

It is the duty of applicable large employers to ensure that the forms are filled correctly and compliance is administered in filling them. It is not the responsibility of the health insurance carrier or the administrator of the plan to do so. It is vital that the Affordable Care Act (ACA) requirements are followed to the letter by the relevant authorities and bodies for maximum compliance.

Employers who have a workforce of more than fifty who are on a full-time basis must report using the Forms 1094-C and 1095-C for the year 2015. Following that condition will enable them to be in agreement with the ACA regulations and avoid the penalties until the year 2016.

To fill the forms diligently, the ALE’s must provide full information about the people employed who are covered by the plan. They must provide full details of identification of the employees who are covered by their plan on a monthly basis, explicitly include health plan offered to the employees, the cost of the health plan and how affordable is it to the recipients. All the above factors are vital when filing the forms for maximum compliance of the ACA.


ACA Reporting Penalties

Penalties for incomplete forms

Some penalties apply to individuals who are not able to meet the deadline and the required information. ALE’s who do not gather the required information in advance will find themselves in a compromising situation as there will be no time to fill the forms concisely and accurately. For forms that do not meet the threshold set by the regulator body and that are not passed to the employees covered will pay a penalty totaling up to $3 million cap per year or a $ 250 per report per year.

Intentional disregard of IRS regulations in filing the forms and passing them on the employees within proper time will be penalized double without a maximum penalty in such cases. In addition to the above penalties, there are penalties referred to as assess-able penalties that ALE’s are penalized if they do not offer the basic health care plan to their employees.


ACA updates

What is different from the earlier reporting?

A shocking aspect concerns the non-ALEs who have to fill in the Forms 1094-B to the IRS and Form 1095-B to the employees who are paying for a health plan that they are paying for themselves. It was not the case in the earlier reporting requirements. Supplemental health plans will also be affected by the new compliance regulations. Under notice 2015-68, the following conditions were adjusted.

Bodies that are concerned with providing sanitary facilities are only allowed to report essential coverage to the IRS; the provider of minimum basic health plan will not be required to report that concerning a given employee. The IRS also allows the ALEs to give less information in regards to their employees since most of them do not possess the relevant information that is required to fill the forms.

For employers who are in a group, for example, Aggregated ALE Group (under code 414) are allowed to report as one institution to the IRS using the forms 1094-C. Some employees have been allowed to use the method known as Qualifying Offer Method that is under ACA reporting requirements.

Employers are relieved from filling the complete Part II, line 15 of Form 1095-C if an employee received a “Qualifying Offer.” ALEs should be ready for collecting and submitting their Forms 1094-C and 1095-C early enough so that proper information is filled according to the required regulations by the Act. Employers should provide the forms to the employees earlier enough for maximum compliance.


Credit for this small business article goes to Neches FCU, Port Neches, TX.
Neches FCU is a Texas Credit Union with a stellar team of professionals ready to service its 45,000 and growing member base.
When their doors open at any service outlet, the mission of “Ultimate Member Satisfaction” becomes the sole objective of every employee.
They are respected for a personal, fast-paced work environment, where clients are known by their name.

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