Revised Reporting Requirements of the Affordable Care Act (ACA) for 2016

The following alert has been modified as a result of some of the due dates being extended by the IRS and the U.S. Treasury on December 29, 2015, as follows:

Form Numbers

Original 2016 Due Dates — Not Filing Electronically

Revised 2016 Due Dates — Not Filing Electronically

Original 2016 Due Dates — Filing Electronically

Revised 2016 Due Dates — Filing Electronically

To Employees

2015 Form 1095-B

2015 Form 1095-C

February 1, 2016

March 31, 2016

To IRS

2015 Form 1095-B

2015 Form 1095-C

2015 Form 1094-B

2015 Form 1094-C

February 29, 2016

May 31, 2016

March 31, 2016

June 30, 2016

Because theIRSis extending the due dates for these information returns, the normal provisions for requesting extended due dates for these forms will not apply. TheIRSis encouraging employers who cannot meet the extended due dates to file the returns anyway. TheIRSsays it will take into account whether the employers made reasonable attempts to comply with the requirements and the steps taken to prepare for the 2016 reporting requirements when determining whether to abate penalties for reasonable cause.

The extended due dates for information returns required to be furnished to individual taxpayers may make it difficult for employees who may not receive the information in time to file their returns. For those taxpayers, the IRS is providing relief by eliminating any requirement that they file amended returns if they receive these statements after they have filed their returns. They should, however, keep the information returns with their tax records.

For more information regarding the due date extensions, see Notice 2016-4 at this link:

https://www.irs.gov/pub/irs-drop/n-16-04.pdf

Under the Patient Protection and Affordable Care Act (ACA), employers are required to file annual information returns with the IRS and furnish statements to employees on their healthcare plan coverage information beginning in 2016 (for reporting on calendar year 2015). These reporting requirements help administer the employer shared-responsibility mandate and the individual mandate added as a part of the ACA. Because this is the first year filing is mandatory, many businesses may not be aware of their reporting obligations. This could lead to confusion for employers and subject businesses to fines that could have easily been avoided. In light of the complexity of the new information-reporting requirements, as well as the potential lack of awareness by many businesses, Rubino & Company wants to advise our clients of the fast approaching deadline and the new reporting requirements.

Reporting Requirements

The ACA’s reporting requirements apply to all employers with 50 or more full-time or full-time equivalent employees during calendar year 2015. There is no extra year of relief from reporting for mid-size employers, as there is under the employer shared-responsibility provisions. Small employers with fewer than 50 full-time employees (including full-time equivalents) will be required to file as well if they are members of a controlled or affiliated service group that collectively has at least 50 full-time employees (including full-time equivalents).

In addition, employers of all sizes that offer employer-sponsored self-insured coverage will also need to report information to the IRS and to affected individual employees about individuals who have minimum essential coverage under the employer plan and therefore have met the individual shared-responsibility requirement for the months that they are covered under the plan.

For future years, the annual federal filing deadlines for this ACA reporting will be consistent with W-2 and 1099 reporting. Form 1095-B or Form 1095-C, as applicable, will be provided to employees by January 31, similar to W-2 forms.

For 2015 reporting, statements must be provided to each employee no later than March 31, 2016 (was February 1, 2016). Form 1094-B or Form 1094-C (transmittal forms), as applicable, and copies of each 1095-B/Form 1095-C are due to the IRS by May 31, 2016 (was February 29, 2016), or by June 30, 2016 (was March 31, 2016) if filing electronically. Companies filing 250 or more Forms 1095-C are required to file electronically.

The IRS forms themselves may be difficult to complete, and should only be prepared by individuals knowledgeable with the compliance and reporting aspects of the ACA requirements. There is a system of codes that an employer must use on various lines of the forms to report each employee’s employment and health coverage. The IRS will use the information submitted on the forms to determine whether employees are subject to the new shared-responsibility penalty for not having health coverage or are eligible for premium tax credits on insurance purchased through the health insurance marketplace. The information will also allow the IRS to determine if an employer is liable for a shared-responsibility penalty.

Additional Information

Additional information and resources are available on the Internal Revenue Service’s website at www.irs.gov/Affordable-Care-Act/Employers. We suggest that you check this website regularly for further information and updates.