Your Guide to ACA Filing in 2019

What happens if you fail to complete your ACA filing in 2019? Don’t wait to find out– here’s how to tackle your filings for the Affordable Care Act.

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If you operate a business with 50 or more full-time employees, you’re probably wondering what your ACA filing requirements are for 2019. We’ve put together this comprehensive post to help you understand ACA filing. Get to know what it means, who needs to do it, how to do it, and other helpful tips. Let’s get started.

What is ACA Filing?

The Affordable Care Act (ACA) requires businesses who meet certain requirements to report the health coverage options provided to their employees. The IRS then collects information from employees showing which employer-provided health insurance plans were offered, along with coverage information. This is how the government ensures businesses comply with ACA filing requirements.

Is ACA Reporting Required for 2019?

You’re probably wondering if you’re required to partake in ACA filing for the 2019 tax season. There is a specific criteria you must meet to be eligible for ACA filing. If you have 50 or more full-time employees, typically that means you should distribute a Form 1095-C to employees. Form 1095-C is an employer-provided health insurance offer and coverage insurance document. This form is used to see whether employees enrolled in one of the offered health coverage plans and if they’re eligible for the premium tax credit. Although no major changes have been made to Form 1095-C for 2019, employers still need to make sure their data for 2018 are correct.

As an employer, it’s your responsibility to submit the information from your employees’ Form 1095-C through a Form 1094-C. The latter simply transmits Form 1095-C to the IRS. If you’re an employer who offers self-insured health coverage to non-employees who enroll in coverage, you’ll need to report information about coverage offered to staff on Forms 1094-B and 1095-B.

If you meet the requirements for ACA filing, here’s how to do it. According to the IRS, “ACA information returns and transmittals are electronically filed through the ACA Information Returns system, also known as AIR.” The IRS encourages most organizations to file electronically regardless of their size.

For more detailed information on ACA filing requirements, visit the IRS website.

What is the Penalty for not Filing 1095-C?

Employers who meet ACA filing requirements have until January 31, 2019, to distribute Form 1095-C to staff members. Organizations must then file copies of each Form 1095-C with the IRS by February 28, 2019.

Failure to do so will result in penalties from the IRS. Companies who submit late or incomplete forms can be subject to fees of $250 per form– or up to $3 million for the year. Failing to file at all can cost $500 per form. Depending on the size of your organization, these costs can add up fast.    

Stay on top of these forms and their deadlines to avoid expensive fees along with an accounting nightmare. It’s important to have a top-notch accounting team to help you comply with ACA filing requirements and ensure team members are set up for success.

This article is intended to be purely informative and is not meant to offer any legal or compliance advice. Make sure to consult legal counsel if you have questions regarding your ACA filing.
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