For Applicable Large Employers (ALEs) or all businesses employing 50 or more full-time employees or full-time equivalents (FTEs), the mandate is that they must offer employer-sponsored health plans or pay a tax penalty if the government has to subsidize the employee’s health care through tax deductions. This provision is effective for the 2015 tax year for companies with 100 or more full-time employees. ALEs are required to submit, to the IRS, at least 1 Form 1094-C (Transmittal of Employer-provided Health Insurance Offer and Coverage Information Returns) and 1 Form 1095-C for each full-time employee. Form 1095-C must also be provided to each employee by January 31st of the year immediately following the applicable tax year. That is, by Jan.31, 2016 for the 2015 tax year. Filing may be done either on paper or electronically. However, if there are 250 or more 1095-C forms then ALEs must submit this data electronically using the Affordable Care Act Information Returns (AIR) system.
ALEs with 100 or more full-time employees have two years to phase in compliance so that they cover 95% of their employees. ALEs with 50 to 99 full-time employees have until 2016 to start complying.
Under IRS tax code sections 6055 and 6056, employers must compile monthly and report annually numerous data points to the IRS (March 2016) and their own employees (January 2016). This data will be used to verify the individual and employer mandates under the law.
ASL’s ACA Compliance Module will remove the tracking and reporting burden on employers by automating data collection, reporting and filing including eFiling of 1094-C and 1095-C.