According to Bernard Health, there are several vital changes in regards to ACA (Affordable Care Act) Information Reporting for the 2016 tax year. The 1095-C reporting processes will be different this year than they were last year and we want you to be prepared. As the next set of deadlines approaches, we want to make sure you are aware of the new changes so you are ready to file on time. Last year, there was a high level of leniency that allowed employers to file 2 months after the initial deadline. This next year will not have an extended deadline and will require diligence to ensure that the form is filed on time. However, there are more changes than just a new strict deadline. The changes include:
Transition Relief: There will not be transition relief this year, as the transition relief that was offered last year is officially ending. For the tax year of 2015, “Qualifying Offer Transition Relief” was offered by the IRS to employers that provided qualifying offers to 95% or more of their full-time employees. This will not occur for the 2016 tax year.
Form Changes: The 1094-C and 1095-C drafts were made available in early July by the IRS. Most forms did not contain changes, but there were a few important adjustments to take note of. Since transition relief is ending, the code to indicate this relief was removed from the forms. New codes have been added into the forms including codes pertaining to conditional offers made to spouses. Other changes include adjustments in the verbiage of employee form details. Overall, the forms look similar to last year’s forms, but they contain just enough changes to warrant an increased level of intentionality.
- Deadlines: The new deadlines are perhaps the most vital change to remember, especially since there will not be an extended timeframe for this year’s reporting. Please reference the chart below to know when the forms are due.
|ACA FORM||2015 Tax Year (Filed in 2016)||2016 Tax Year (Filed in 2017)|
|1095-C due to employees||March 31, 2016||Jan 31, 2017|
|1095-C due to IRS if filing on paper||May 31, 2016||Feb 28, 2017|
|1095-C due to IRS if filing electronically||June 30, 2016||March 31, 2017|
When filing forms such as the 1095-C with the IRS, it is important to know what is expected of your business and when those expectations need to be met. THW Insurance is here to help you navigate all of your insurance needs and questions. Contact us today to see how we can help your business!
(Source: Bernard Health)