It’s that time of year again – Affordable Care Act reporting season, when employers prepare to comply with ACA 1095-C furnishing deadline 2023. To meet ACA deadlines, employers must furnish forms to their full-time employees by March 1, 2024.
Understanding ACA Reporting Requirements
Effective from the 2015 tax year, the Affordable Care Act (ACA) aims to increase the affordability and accessibility of healthcare for millions of Americans. It requires all Applicable Large Employers (ALEs) to offer full-time employees qualifying healthcare coverage. An ALE is an employer with an average of at least 50 full-time employees.
As part of their obligations, ALEs must meet employer shared responsibility provisions (ESRP), also known as “employer mandates”. ACA employer mandates require ALEs to offer affordable health insurance to full-time workers and their dependents. Health insurance offered must also meet minimum essential coverage (MEC).
Under ACA reporting requirements, certain health insurance information must be submitted to the IRS. ALEs must furnish each employee who was full-time for any month in 2023 with a Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage.” That information must be reported for all 12 months of the calendar year for every employee.
1095-C Form Compliance
Multiple deadlines must be met for ALEs to comply with ACA reporting requirements:
- Copies of forms must first be delivered to employees. ACA 1095-C furnishing deadline 2023 is March 1, 2024.
- IRS filing deadlines for 1095-C depend on the filing method. For organizations filing on paper, 1095-C must be filed by Feb. 28, 2024. If filing electronically, the deadline is April 1, 2024.
Effective Jan. 1, 2024, all employers submitting 10 or more returns must file electronically.
Form 1094-C must be used to report summary information for each ALE and to transmit Forms 1095-C to the IRS. Consent to furnish statements electronically must also be obtained from employees, to ensure individuals are able to access them.
1095-C Form Penalties
Financial and legal consequences of late, inaccurate, or non-submission of forms are at an all-time high. Failure to comply with IRS filing deadlines for 1095-C, or furnishing incorrect forms, may incur significant penalties. 2024 has seen 1095-C form penalties increase to the following:
- $60 per return if filed within 30 days of the due date.
- $120 per return if filed 31 days late through Aug. 1.
- $310 per return if filed after Aug. 1.
- $630 per return for intentional disregard.
Maximum penalties differ for small and large businesses, with no maximum penalty for intentional disregard. Monthly interest is accrued on outstanding amounts.
Penalties for failing to file accurate information are $310 for each return for which the failure occurs.
It is in every organization’s interest to ensure timely and accurate preparation of information to meet Affordable Care Act deadlines.
Employers that fail to meet ACA employer mandates also risk the following penalties:
- 4980H(a) Penalty: employers that don’t offer minimum essential coverage to at least 95% of their full-time employees and their dependents. In 2024, the penalty is $2,970 per full-time employee (excluding the first 30 employees).
- 4980H(b) Penalty: employers that don’t offer coverage that is affordable and provides minimal value. The penalty in 2024 is $4,460 for each full-time employee who receives the tax credit and purchases Marketplace coverage.
Streamlining Compliance with ACA Reporting Software
Updated IRS rules effectively remove the option of paper filing in 2024. Employers can ensure 1095-C form compliance by engaging with a vendor that offers ACA reporting software. Trusaic ACA Complete® offers comprehensive ACA compliance solutions and the benefits below:
Ensures clean data: As the saying goes, “bad data in, bad data out.” Our ACA reporting software avoids the risk of inaccurate data that often leads to penalties. Gathering information from multiple sources, we transform it into accurate, actionable intelligence. Clean data, combined with our legal and regulatory expertise, provides the basis for all of our ACA solutions.
1095-C form compliance: ACA Complete® enables you to meet IRS filing deadlines for 1095-C and avoid penalties for late or inaccurate returns. Our software delivers everything your organization needs to monitor, prepare, furnish, and file your 1095-C forms. What’s more, the entire compliance process is managed by one of our dedicated ACA experts.
Navigate the complexities of ACA reporting: Meeting ACA employer mandates requires mastery in data quality, regulatory compliance, and analytics. Our ACA reporting software includes tracking and managing employee coverage. Monthly monitoring means you know exactly when offers of healthcare coverage are required. We also carry out retroactive audits to correct any previous issues and help employers to avoid them in the future.
Comprehensive ACA compliance solution: ACA compliance goes beyond federal level. ACA Complete® can help you to comply with complex ACA state reporting rules including California, New Jersey, and Washington D.C.
Don’t miss the ACA 1095-C furnishing deadline 2023.
Navigate the maze of 1095-C form compliance with ACA Complete®. And with our fast implementation and seamless integrations, you can start to minimize your risk immediately. Schedule a demo today.
As we head into reporting season, we’ve compiled a list of FAQs around ACA reporting requirements which you can find here.
Missing an ACA filing or furnishing deadline could land your organization a significant penalty from the IRS. To ensure you never miss one, download the ACA 101 Toolkit, which documents the various federal and state reporting deadlines.