The IRS has extended the filing deadlines for certain reports required under the Affordable Care Act (ACA).
The rules referred to as the "employer mandate" require "applicable large employers" (ALEs) to report information about health care coverage, if any, offered to full-time employees. An ALE is generally an employer with at least 50 full-time employees or the equivalent. Under IRS Notice 2016-4, ALEs and health insurance companies have an additional two months to provide employees with Form 1095-B, “Health Coverage,” and Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage.” Further, ALEs have an additional three months to file Form 1094-C, “Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns,” plus a copy of all employees' Forms 1095-C with the IRS.
In most cases, ALEs are only required to file Forms 1094-C and 1095-C. Forms 1095-B and its transmittal Form 1094-B are primarily filed by health insurance companies. However, if an ALE has a self-insured health care plan, it is also required to file Forms 1094-B and 1095-B. In general, an employee working for an ALE will receive both a Form 1095-C (from the employer) and a Form 1095-B (from the health insurance company, or from the employer in the case of a self-insured plan).
There are big potential penalties for late filing/nonfiling of correct reports. Get some extra help now from your payroll processing service or accountant!