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Beware of ACA Penalties
for Employers

Noncompliance with the current rules could results in severe ACA penalties for employers.

Important Deadlines to Prevent ACA Fines

For the first time in 2016, employers were required to report employee health insurance coverage under the Affordable Care Act (ACA), which was overwhelming for many. What made it a little more manageable, however, was the IRS pushing out the deadlines. You got an extra two more months to distribute employee copies and three more months to e-file with the IRS.

ACA reporting continues and the IRS relief for filing penalties is scarce – it’s highly unlikely you’ll get the same extensions as before. Rather, you should mark your calendars with these specific 2023 deadlines for reporting 2022 amounts.

Form Recipient Copies Due Due to IRS

1095-B, 1095-C

March 2, 2023

Electronic filing due March 31, 2023

Be Careful: Penalties for NonCompliance Are Steep

You must comply with ACA reporting requirements, or risk steep penalties. Failure to File Correct Information Returns, imposes a penalty per return for each of the following failures related to filing ACA Forms :

The penalty for failing to file or furnish correct ACA forms to the IRS or the recipient is $290 per form with a maximum fine of $3,532,500. Special rules apply that can increase the per-statement and total penalties. If there is intentional disregard of the requirement to file the returns or furnish the required statements, there is no maximum limit to the possible penalty.

Capturing and Tracking Necessary Data

The information gathering process is challenging for many businesses. To capture all the data required for 1095 reporting, you’ll need to pull from four major sources or internal departments: HR, payroll, benefits and time-tracking systems. This requires careful coordination, sharing and monitoring to complete the forms accurately and on time.

The key items you need to track:

Most likely pulled from payroll or time-tracking system

Most likely pulled from HR records

Most likely pulled from HR records and benefits

Strict security is also necessary. When the employee’s name and health insurer appears on the same form, the data is considered protected health information (PHI) subject to the HIPAA Privacy Rule. Using a solution that is SOC-certified and HIPAA-compliant, like efileACAforms.com, can provide an added layer of protection to comply with the restrictions which limit uses and disclosures of employee information

A few essential Do’s and Don’ts can ensure a smooth filing process:

By following the guidelines above, you can drastically improve your chances of a smooth and accurate ACA filing process. However, even with the best intentions, data errors can occur – which can result in extra time and effort to correct. You can trust efileACAforms.com to utilize the latest data verification processes to ensure your forms are filed and distributed correctly the first time.

Start using efileACAforms today
Free to try. You only pay when you're ready to file.