American founding father, Benjamin Franklin, had some timeless advice for people facing big deadlines: “You may delay, but time will not.” Fast forward from the 18th century to the present and his words still ring true – especially if you are an employer who is coming face-to-face with Affordable Care Act (ACA) Annual Reporting Requirements.
2015 is a pivotal year for ACA compliance. It’s the first year that recording and reporting very specific information about health care coverage is required for employers with 50 or more employees. Reporting is required for employers with 50 or more employees, but penalties will only be assessed on employers with 100 or more full-time employees in 2015 and 50 or more full-time employees in 2016 and after under the ACA’s Employer “Shared Responsibility” provisions. That means employers have new types of data to compile, new forms to complete, and additional deadlines to meet. Through mandatory information reporting to their employees (on Form 1095-C) and the IRS (on Forms 1094-C and 1095-C), employers must show and certify how they complied with Shared Responsibility mandates.
The reporting is an annual event and, starting this year, must be integrated into year-end planning. Employers should adopt this mindset from the get-go: treat these forms the same way as Forms W-2 and W-3 – annual reporting requirements that are here to stay. In fact, Form 1094-C has a similar statement to Form W-3 preceding the line on which a company official places his or her signature: ‘Under penalties of perjury, I declare that I have examined this return and accompanying documents, and to the best of my knowledge and belief, they are true, correct, and complete.’
One of the core attributes that clearly separates ADP from our competitors is the respect we have earned as an employment tax filing leader and now, ACA thought leader. To continue our educational and insightful communications, we’re pleased to share our ACA Annual Reporting Infographic, which artfully and concisely presents the ACA annual reporting process for employers. I invite you to take a few minutes to review it, and share it with your colleagues.
Enjoy the infographic and please feel free to share!
This article originally appeared on the ADP@Work Blog.