Greatland is adding year-end reporting for the Affordable Care Act to its W-2 and 1099 reporting software, Yearli.
To help businesses understand all of the reporting rules associated with the Affordable Care Act, Greatland has also beefed up its staff.
“Understanding all of the reporting rules associated with the Affordable Care Act can be confusing, and we expect many businesses to have questions this year,” said Greatland CEO Bob Nault. “Greatland has full-time experts dedicated to providing ACA reporting information and the necessary forms to businesses so they can remain in compliance with the new reporting requirements.”
Greatland’s ACA reporting capabilities will be offered through its Yearli Desktop and Performance software. Through Greatland, employers can purchase forms to comply with ACA reporting requirements; electronically file Forms 1095-B and C along with related transmittal forms to IRS and print and mail copies to employees. Employers can also use Greatland’s system to enter, store and track ACA-required data. Greatland also offers an employer reporting checklist and a “Do I Have To File?” decision tree.
ACA Reporting Requirements
Affordable Care Act reporting is the action of filing required information with the Internal Revenue Service and sending copies to recipients/employees. The Affordable Care Act requires employers to file annual information returns with the IRS and furnish statements to employees on health care plan coverage information beginning in 2016 (for reporting on calendar year 2015). Incorrect filings for calendar year 2015 (reported in 2016) will not be penalized if employers/insurers file on time and make a good faith effort to comply.
For calendar year 2015, employers with 50 or more full-time employees (including full-time equivalent employees) and all self-insured employers regardless of their size must report healthcare coverage information to employees and the IRS.
Full-time employees are those who worked an average of 30 hours or more per week for more than 120 days in a year. Under this guideline, employers may have less than 50 full-time employees, but still meet the requirements for ACA reporting. Healthcare.gov offers assistance, including a Full-time Equivalent Employee Calculator, to help determine filing needs.
Insurance companies or businesses that are required to report health care coverage will need to file one of two form types to the federal government. Both paper and e-file are acceptable filing methods, with the e-file threshold being 250 forms.
1095-B Section 6055 of the Tax Code outlines the requirements for 1095-B reporting. Form 1095-B must be issued by the insurance company (or self-insured employer) to the individual and the IRS as proof of coverage. Form 1094-B is the related transmittal sent to the IRS.
1095-C Section 6056 defines the reporting requirements for large employers (50 or more full-time employees including full-time equivalent employees) to provide their employees with documentation outlining any applicable offer of health coverage. Form 1095-C is a statement issued by employers with 50 or more full time employees (including FTEs) to employees and the IRS. Form 1094-C is the related transmittal sent to the IRS.
Forms 1095-B and C will require some or all of the following data: employer ID numbers, taxpayer identification numbers of employees/recipients and their dependents, addresses, and months of coverage. There are no state reporting requirements associated with the 1095-B or 1095-C.
The federal filing deadlines for Affordable Care Act reporting are consistent with W-2 and 1099 reporting. Form 1095-B or Form 1095-C, as applicable, must be provided to recipients/employees by Jan. 31, similar to W-2s. This means that statements for 2015 must be provided no later than Feb. 1, 2016 (because Jan. 31, 2016 is a Sunday).
Below are the key dates, which are also included as reminders in Greatland’s calendar widget found on the ACA website:
Due Date Requirements
Feb. 1, 2016 Form 1095 copies to Recipients/Employees
Feb. 29, 2016 Paper copies of Form 1095 to IRS
March 31, 2016 E-file Form 1095 to IRS
The due dates represent 2015 calendar year reporting.
For more information, visit aca.greatland.com.
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