Last Updated on December 3, 2021 by G. T. HR

The IRS, has extended the deadline for furnishing Affordable Care Act (ACA) reporting forms to employees. The original date of January 31, is now March 2.

The IRS proposes regulations that would permanently extend by 30 days the deadline for employers to furnish individual statements to full-time employees that indicate whether their employer-sponsored health insurance met ACA requirements for minimum essential coverage. The new deadline for furnishing Forms 1095-B or 1095-C would be March 2.

The proposal says employers and insurers may take advantage of the extension for delivering 2021 reporting forms to employees before the rule is finalized. Please note that it does not change the due dates for filing these forms with the IRS.

The ACA requires applicable large employers (ALEs)—employers that during the prior year had 50 or more full-time employees or the equivalent when part-time employees’ hours are combined—to submit reporting forms to the IRS and to distribute these forms to employees by the following deadlines:

*Employers that file 250 or more information returns with the IRS must file the returns electronically.

What is the Penalty For Late Filing?

Late or inaccurate forms could lead the IRS to notify an employer that it may be liable for a penalty payment. The IRS may impose penalties of up to $280 per form for failing to furnish an accurate Form 1095-C or 1095-B to an employee. A separate $280 per-form penalty may be imposed for failing to file an accurate form with the IRS, for a potential $560 penalty per employee.

The above penalties are for incorrect reporting and are separate from ACA penalties for inadequate coverage:

• The Section 4980H(a) penalty, issued to ALEs that fail to offer minimal essential coverage to at least 95 percent of their full-time employees and their dependents, are expected to be $2,750 per employee, or $229.17 a month, for the 2022 tax year. The assessed amount will deduct 30 full-time employees from the total number of full-time employees.
• The Section 4980H(b) penalty, issued per each employee that receives a premium tax credit/subsidy from a state or federal ACA marketplace exchange when the ALE does not offer a coverage option that meets the affordability threshold, is expected to be $4,120 per employee or $343.33 a month, for the 2022 tax year.

The IRS sends a Letter 226-J to notify ALEs that they may be liable for an employer shared responsibility payment.

Source: IRS.

Get Help Understanding ACA Regulations

MyHRConcierge provides our employer clients expert consulting regarding the Affordable Care Act through our ACACompli service. Get help with the ACA or other human resources compliance issues from MyHRConcierge. To get started, contact MyHRConcierge at 1-855-538-6947 x.108 or email ccooley@myhrconcierge.com.