By now you are very aware of the ACA reporting requirements for the 2015 Minimum Essential Coverage (MEC) and Large Employer Shared Responsibility regulations, which will help the feds track the compliance of companies with the employer mandate and individuals with the individual mandate. On December 28th, the IRS announced extensions for the 2016 reporting due dates. Below is a summary of the forms and the new due dates:
2015 Report |
Required By |
Original Deadline |
Extended Deadline |
Forms Sent to Individuals: |
Self-funded small employers (under 50 FTEs) Large employers (50+ FTEs) |
2/1/2016 |
3/31/2016 |
Forms Filed with the IRS: |
Self-funded small employers (under 50 FTEs) Large employers (50+ FTEs) |
2/29/2016 – if filing on paper |
5/31/2016 – if filing on paper |
Although the deadlines have been extended, we encourage employers to provide the necessary forms as soon as possible. The IRS has stated that no additional extensions will be granted, and companies that do not comply could face penalties. Individuals who receive their 1095 forms after they have already filed their tax returns for 2015 will not be required to amend their returns. However, they should keep their 1095 forms with their tax records.
Failure to file/furnish an annual IRS return or provide individual statements to all full-time employees originally carried a penalty of $100 per form. The current penalty amount is now $260 per form. The annual cap on penalties has also increased from $1,500,000 to $3,178,500.
Don’t hesitate to contact us with any questions!