Affordable Care Act Employer Reporting

Consider Yeo & Yeo for Affordable Care Act Employer Reporting ACA Compliance and Form 1095-C Preparation

Under the Affordable Care Act, Applicable Large Employers (ALEs) are required to file Form 1095-C along with the respective transmittal Form 1094. The IRS was lenient in assessing penalties for incorrect or incomplete information reported in 2016, for the 2015 calendar year, if the reporting entity made a good faith effort to comply. However, there is no room for error this year.

If you completed Affordable Care Act employer reporting yourself last year, you know how confusing it can be. The instructions for Form 1095-C preparation are very detailed, and the Form requires careful review to ensure that it is properly completed. Most of the software that is available to purchase in order to facilitate the reporting is not user-friendly, and QuickBooks does not support a feature for Affordable Care Act employer reporting.

Yeo & Yeo can simplify ACA compliance by providing Form 1095-C preparation services that are efficient and cost-effective. Companies that may benefit most from this service include those with:

  • More than 50 full-time and full-time equivalent employees
  • 49 or fewer full-time and full-time equivalent employees, where the company sponsors a self-insured group health plan for employees
  • Many new employees hired throughout the year
  • Employees who change their health insurance plan

The time savings for your staff may be significant. For companies that complete Affordable Care Act employer reporting themselves, we estimate that it can take 45 minutes per employee for the entire reporting process.

What does Yeo & Yeo provide?

  • We provide an easy-to-follow monthly spreadsheet to collect the information needed for your required report. Compiling the information as we go avoids a year-end rush and ensures your company’s ACA compliance with this often-confusing requirement.
  • Determines if your company is or is not an ALE.
  • Assesses whether your Plan is affordable and of minimum value, and what, if any transitional relief is available.
  • Tracks variable hour employees; if they become full-time during the year they must be offered health coverage.
  • Compiles employee and health coverage information for reporting to the IRS and your employees.
  • Completes required IRS Forms and assists with timely filing and distribution.

What are the IRS penalties for noncompliance?

Affordable Care Act employer reporting must be completed timely and correctly in order to avoid significant penalties. Employers that fail to file Form 1095 timely with the IRS, including all required and correct information, are subject to penalties ranging from $30-$100 per Form 1095 and could also face penalties ranging from $30-$100 per Form 1095 for failure to furnish Forms to employees.

Consider Yeo & Yeo

Avoid these penalties, save a considerable amount of time, and gain peace of mind. To learn more about Yeo & Yeo’s ACA Compliance and Form 1095 preparation services, contact Christine Porras, Manager of Yeo & Yeo’s Payroll Services Group. Visit employer reporting requirements, for more information.