3 Resources To Assist Employers With 2021 ACA Reporting

October 7, 2021 Robert Sheen ACA Compliance

It’s officially the final quarter of the 2021 tax year and that means tax season is right around the corner. What precautions is your organization taking to ensure a smooth ACA reporting experience this year?

As an ACA Times subscriber, we’ve curated a list of the top three ACA resources to help ensure a smooth 2021 ACA reporting experience, to be filed and furnished in 2022. 

The 2021 ACA 101 Toolkit 

Trusaic’s ACA 101 Toolkit for the 2021 tax year is an excellent desk reference that includes important state and federal filing deadlines, penalty amounts, affordability calculations, and steps for how to respond to IRS penalty Letter 226J, which the agency is currently issuing for the 2018 tax year. Recent Letters 5669, however, indicate that the IRS will begin issuing Letter 226J for the 2019 tax year any day now.

If you need an all-in-one guide that outlines when to file and furnish ACA information for the 2021 tax year, we highly recommend downloading this free guide. 

Employer’s Guide to Coding ACA Form 1095-C

The IRS is penalizing employers who comply with the ACA’s Employer Mandate but file their information incorrectly. This development indicates that the agency is cracking down on enforcement, and employers must be diligent when reporting ACA information. We created the Employer’s Guide to Coding ACA Form 1095-C to help employers file their ACA information correctly. 

The guide includes real, coded 1095-Cs from fictitious organizations ranging from quick-service restaurants to recruiting and construction. We did this to demonstrate different coding applications for different types of healthcare plans and unique workforces.

In addition to real-world examples, the guide includes a 1095-C code glossary and an affordability chart to help you calculate employee contribution amounts. 

The 2021 ACA Essential Guide for Employers

Everything from individual state ACA reporting obligations to employer’s federal requirements — the 2021 ACA Essential Guide for Employers outlines everything employers must do to comply with the ACA in the 2021 tax year. 

In addition, the guide specifically spells out which employers must comply with the ACA, tests to perform to determine ACA status, and explains key terms related to the types of coverage employers must extend to their ACA full-time employees. Employers that aren’t complying with the ACA should note that the guide also explains how the IRS issues penalties. 

Preparing for 2021 ACA reporting

Complying with the ACA in 2021 may just be the most difficult tax year yet. We hope you find these resources to be helpful as you begin to prepare for 2021 ACA reporting. 

If you need assistance meeting the ACA’s Employer Mandate reporting requirements for the 2021 tax year, both federally or on a state level, contact us to learn about our comprehensive full-service ACA compliance solutions. From complete compliance, furnishing, and reporting, to stand-alone state-filing, we’ve got you covered.

As a reminder, the ACA’s Employer Mandate requires employers with 50 or more full-time employees and full-time equivalent employees, known as Applicable Large Employers (ALEs) to:

• Offer Minimum Essential Coverage (MEC) to at least 95% of their full-time employees (and their dependents) whereby such coverage meets Minimum Value (MV); and 
• Ensure that the coverage for the full-time employee is deemed affordable based on one of the IRS-approved methods for calculating affordability.

Failure to comply with these two requirements can result in ACA penalties under IRC Section 4980H(a) and (b) via Letter 226J. If you need assistance complying with the healthcare law, contact us to learn about our different ACA solutions.

Undertaking an ACA Penalty Risk Assessment can tell you if your organization is at risk of receiving ACA penalties from the IRS.