The Affordable Care Act annual reporting deadlines for 2022 are looming, increasing the workload of employers. There’s usually so much to cover, including compiling employee information and their identification numbers.
The purpose of the reporting requirements is to push the mandate of employers of providing minimum essential coverage (MEC) to at least 95% of employees. This law targets individuals, small employers, and “applicable large employers” (ALEs—employers with 50 or more full-time employees).
To better navigate through layers of rules and laws, this post provides an overview of the relevant reports to prepare and file, eligibility as well as requirements.
What Are the ACA Reports?
The report forms enable the IRS to ensure that employers are complying with the employer mandate. The forms are:
- Form 1095-A: This form is filled by individuals who have health insurance coverage under the Health Insurance Marketplace.
- Form 1095-B: Employers who offer self-insured health coverage file this form from health insurance providers. It is common with small businesses, although larger organizations are signing in for the insurance coverage.
- Form 1095-C: This form is received by ALEs, who provide either fully insured or self-insured health coverage to individuals classified as full-time employees. This also includes self-insured ALEs with part-time employees.
- Form 1094-B: It is a cover sheet and, along with Form 1095-B, both provide information about coverage type and are filed together.
- Form 1094-C: All ALEs are obligated to file Forms 1094-C and 1095-C in respect of health coverage offered from 2016. It serves as a cover sheet for Form 1095-C, which is filed when employers have to send Form 1095-C to the IRS.
Every year, employers are expected to fill out the forms with information on healthcare coverage in a calendar year before submitting them to the IRS as well as providing copies to their employees. The data includes:
- Employer Identification Number and contacts
- Names and addresses of employees
- Employees social security numbers and months of coverage
- Employees dependents
- Taxpayer Identification Number
Eligibility for ACA Reporting
Generally, ACA reporting obligations are based on the size of the employer and the type of coverage offered. The requirement automatically applies to all employers who have 50 or more full-time employees. This also extends to self-insured employers and individuals who have enrolled in the Health Insurance Marketplace.
It’s important to note that self-insured employers with 50 or more full-time employees will combine Forms 1095-B and 1095-C into Form 1095-C reports. Also, self-insured employers involve small businesses with less than 50 full-time employees and will need to fill in Form 1095-B.
2021 ACA Reporting Requirements
The ACA reporting requirements largely target “applicable large employers” who have hired 50 or more employees. These employers are expected to annually report to the IRS on the coverage provided to their employees and their dependent children. The filling is done on Form 1095-C, which must be submitted by a set deadline. Failure to do so attracts a penalty.
The form shows information on the benefits coverage provided to full-time employees and their dependent children. In a similar fashion, the employer is expected to hand over copies of the report Form 1095-C to their employees.
Employers face the uphill task of reporting on all their full-time and full-time equivalent employees, which also extends to part-time employees who can be qualified as full-time employees with accompanying benefits under ACA.
2022 Deadlines For Reporting
The IRS has proposed to extend the deadline for distributing Forms 1095-B and 1095-C to employees for 30 days until March 2, 2022. Notably, on October 2, 2020, the IRS announced it would extend the deadline for providing employees with copies of Forms 1095-B and 1095-C from January 31, 2021 to March 2, 2021. However, currently, the deadline for delivering 1095 forms to employees has gone back to January 31, as is the norm.
The other deadlines include: February 28, 2022, for filing paper Forms 1094 and 1095 and March 31, 2022, for electronic filing.
Getting Ready For ACA Reporting Dates
We recommend that, as an employer, you’re always fully informed of the full-time status of your employees. This helps you avoid failing to comply with ACA reporting requirements and paying penalties.
ASAP Payroll can help you stay on top of all the preliminary steps, including preparing and filing forms 1094 and 1095, managing IRS notices and notifications as well as having a system in place to track and manage employee information. Feel free to contact us today.
