Frequently Asked Questions- ACA Reporting Requirements

There are a lot of details that entail reporting of ACA, which is why we have compiled a list of frequently asked questions. To accurately report and ensure compliance, it is important that you are well-aware of what is required and have clarity on all segments of the process.


Frequently Asked Questions

1. What is the objective of these forms?

Americans were required to provide minimum coverage to their employees or risk paying a penalty starting from 2014. This was known as the individual mandate and required the employers to fill a form to report compliance, these forms assist the IRS to identify and confirm which individuals had coverage from their respective employers.

The information included in the IRS form will help determine if any of the Applicable Large Employers will have to pay the employer mandate penalty or if an employee is subject to the premium tax credit.

2. Does the reporting requirement apply to everyone?

The reporting requirement does not apply to small firms and companies. If you have less than 50 full-time employees, you are categorized as a small employer. If you have full-time employees exceeding 50, then you are an Applicable Large Employer and have to report.

If a non-ALE member offers health insurance, their insurance vendors are responsible for reporting if any.

3. I am a small employer and offer health benefits to my workers, do I still need to report?

If you are a non-ALE member and are self-insured then you will have to file 1095-B and 1094-B forms. Whereas if you are offering full coverage through an insurance company, they are responsible for reporting on your behalf.

4. What is the due date of the forms?

The deadline for the 2019 tax year is March 2, 2020. The deadline was extended by the IRS and if you are filing it electronically, you can do it by March 31, 2020.

Please note that for the 2019 tax year, penalty relief for failing to furnish Form 1095-B was provided. If you want to qualify for penalty relief, click the IRS Notice 2019-63 for more details.

5. What information is required for these forms?

You should have information such as the name, address, and Social Security number of all individuals including the full-time employees. Additionally, their share of the monthly premium for the lowest cost self-coverage and its duration should also be included in the information being collected.

6. Do any states have reporting requirements for health coverage?

Most states have their own reporting requirements when it comes to health coverage. In some states, the employer who is reporting is supposed to ensure that individual health coverage mandates are taken care of. To make sure you’re on the right track, check your state law.

7. Who do I consult for help in filing of these forms?

There are plenty of resources that can help you in filing these forms. These include legal counsel, tax professional, and insurance brokers. If you need more details, click on the following link that provides information provided by the IRS.

Many companies rely on ACAreporter for their reporting needs. If you need any assistance in ACA reporting. Contact us!