Start Preparing for ACA Reporting - Deadline Approaching Soon!

The approaching deadlines have made it all the more crucial for employers and HR pros to make ACA reporting as their topmost priority.

The compliance task may get easier with these notes. Here’s a quick look:

• Employees must get their forms 1095-C for insured plans by Feb 1, 2016
• IRS must receive forms 1094-C for insured plans by Feb 29, 2016

If you are filing 250 or more returns for 2016, IRS mandates employers to file them electronically. To file electronically, the deadline is March 31, 2016. Whereas, in some situations, employers may get an extension of even 30–60 days.

Related — Before E-filing Your ACA Returns, Learn About These Terms And Facts!

Make sure that as an employer you have abided by all the compliance tasks and performed them well-within the deadlines.

Here is a checklist for you to stay updated with rolling deadlines:

Learn About Key Mandates and Provisions:

Being an applicable large employer having 50–99 full time employees, you have a set of reporting requirements to be fulfilled as per the law. Even if you do not offer healthcare coverage or qualify for a transitional relief, you need to abide by the law.

As per the law, reporting requirements are solely based on the calendar year and you need to report for coverage offered every month of respective calendar year.

Keep Communication Transparent:

To effectively complete the reporting task, ensure that everyone is on the same page and all the participants- employees, admin teams, HR pros, etc. all are aware of the proceedings. This is crucial as every department is involved in providing related data and information and thus, keeping everyone in loop, will help you avoid any data discrepancy or mistakes due to miscommunication.

Usually the data and information that employers need to collect for the reporting purpose include coverage eligibility proofs and documents, enrollment and termination dates, employee share of monthly premium, related documents of employees’ dependents, spouse, etc.

Review IRS Requirements:

Keep yourself updated with the necessary requirements and instructions as given by the IRS. If you have reviewed and understood the instructions and guidelines, then executing the process will get much easier for you. Furthermore, to make it smoother, you can break down the tedious forms into different sections.

Check the Forms and Reporting Details before Final Filings:

This is the unsaid rule. You must double check all the forms and related documents before final reporting. Needless to say that the filing errors may lead you to unnecessary costs and expenses and in worst scenario, even penalties.

On the whole, keep these little yet important things in mind while preparing for ACA reporting. The deadline is approaching soon, and thus, the employers better get ready for the first ever reporting with IRS.