ACA reporting deadlines extended: What HR teams need to know

With so many end-of-the-year responsibilities on their plates, employers voiced their concerns about their readiness to submit their Affordable Care Act reports to their benefits providers and human resources teams. As a result, the IRS announced on Dec. 28 that it will extend the filing deadlines for certain documents. Both small and large employers will be affected by these changes.

1094-C and 1095-C
Large employers – those with 50 or more full-time equivalent workers – are required under the ACA to file forms 1094-C and 1095-C. In addition to this reporting, companies and their HR teams must provide a copy of 1095-C to all employees, along with a duplicate of their W-2 form, as the forms give employees information regarding their individual tax returns and offer proof of minimum essential coverage.

Initially, business were obligated to distribute 1095-C by Feb. 1. That deadline has now been pushed back to March 31. Both 1094-C and 1095-C were originally required to be filed by Feb. 29 if by paper and by March 31 if completed electronically. The IRS has changed the due dates to May 31 and June 30, respectively.

1094-B and 1094-B
The IRS requires small employers – organizations with less than 50 full-time equivalent employees – to file forms 1094-B and 1095-B. Although these companies are not obligated to provide health coverage to their workers, those businesses offering a self-insured health plan must complete these documents. In addition, similar to large employers, small businesses must provide their staff with a copy of 1095-B for individual tax purposes.

The distribution to workers of 1095-B had an original deadline of Feb.1. That cutoff has been pushed back to March 31. Originally, both 1094-B and 1095-B were required to have been received by Feb. 29 if by paper documents or by March 31 if completed electronically. Now, both forms are due to the IRS by May 31 and June 30, respectively.

Next steps for human resources
While the altered deadlines will give HR teams more time to deliver and file the appropriate forms, it is also crucial for staff to make employees aware of the changes for their individual purposes. Companies still need to make sure they distribute the right forms to workers by the correct, extended IRS cutoff. Employers should remember they are responsible for completing form 1095-C for each full-time employee or part-time worker who has opted into their benefits offerings.

HR personnel may need to supply additional IRS and ACA training for employees who may find the task particularly challenging, especially because form 1095-C is a new document in this calendar year.