IRS Reporting: Deadlines and Penalties

With 2016 upon us, employers should be preparing for any IRS reporting requirements they may have concerning health coverage. To this end, it is vital to know and keep track of the deadlines for reporting, along with potential penalties for failing to do so.

As previously stated, the deadlines for reporting coverage to the IRS have been extended due to widespread concerns and confusion with the requirements of this new process. The following are the new deadlines:

B Forms

For small employers who offer minimal essential coverage and are self-insured

Forms 1095-B

sent to employees

1094-B & 1095-B

sent to IRS

Due date March 31, 2016 May 31, 2016 (paper filing)

or

June 30, 2016 (electronic filing)

 
C Forms

For applicable large employers

Forms 1095-C

sent to employees

1094-C & 1095-C

sent to IRS

Due date March 31, 2016 May 31, 2016 (paper filing)

or

June 30, 2016 (electronic filing)

Essentially, the new deadlines allow an additional month for getting the 1095’s to employees and an additional three months for getting the 1094’s and 1095’s to the IRS.

An employer that fails to meet any of these deadlines may face financial penalties.

  • Failure to provide forms to employees – $250 for each (maximum of $3 million)
  • Failure to file forms with the IRS – $250 for each (maximum of $3 million)

Note, these penalties apply separately to both the 1094’s and 1095’s, so failure to complete both on time will double the penalty ($500 to a maximum of $6 million).

It should be noted though that the IRS has stated that relief from these penalties is possible if the employer is able to show “good faith efforts” that they attempted to comply with the reporting requirements. However, this relief is not guaranteed.

While navigating the roads of these new reporting requirements can seem daunting, BPA has recently partnered with Healthcare Interactive to offer you options for reporting and submission of forms. More information can be found at http://www.hciactive.com/solutions/aca-reporting or by contacting BPA at (800) 236-7789.