Many employers who are required to file two tax documents next year are not planning to file, or they just don’t know they are required to. The form #’s are 1094-c and 1095-c. Each employee are supposed to be given a copy of the form sent to the IRS in order to file their own taxes. The fine to the employer for not providing this form is $250 per employee, the fine can be as high as $3,000,000.
There are many more details surrounding this set of new laws under the ACA, or Affordable Care Act.
Many health insurance agents are aware of the requirements, some have chosen to hope the law goes away. It is not and the law is in full swing. Find an agent or an attorney, or CPA who have kept up with the new healthcare laws. The IRS will work with you at this writing, but soon will start penalizing you and your employees for not having credible coverage.
The reporting is fairly complicated. One of the requirements is to report the # of Full time employees you had during 2015. This is reported by month and includes your full time equivalents. That is a fairly complicated formula. Most payroll companies have the data already and are providing the information needed to complete the forms. Some payroll companies are actually completing the forms for you to sign and file. If you don’t have a payroll vender your job will be much more tedious.
Again I stress that you should hire a professional that knows what the rules are.
~Joe Higdon 512-491-8899
Austin and Central Texas’ leading Employee Benefit Specialists