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Tuesday, 14 February 2017 13:22

Ready for your ACA Reporting due March 2nd?

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Although there is much speculation about the future of The Affordable Care Act (ACA), it’s still the law of the land for now. For all large employers and small employers that are self-funded, the deadline of March 2nd to distribute 1095-Bs and 1095-Cs to employees is fast approaching. If your organization does not have all the necessary information to complete these forms, it’s time to act fast!

Section 6055 of the ACA requires these reports to be sent to all employees and their dependents that received medical coverage any time in 2016. These forms help the IRS determine if minimum essential coverage is being offered under the employer mandate, and also helps enforce the individual mandate.  Most organizations do not typically collect Social Security Numbers for their employees’ dependents, however this is a necessary item in completing these forms. 
If you haven’t already collected dependent SSNs, how do you go about getting them quickly? In the age of identity theft, you may have employees that are reluctant to supply them. While there is no model language provided by the IRS to obtain them from employees, we suggest the following language:
“___Group Name___ is required by the IRS to provide important tax forms to employees and their dependents each year. To complete our obligation, we request that you provide the SSNs for your dependents ASAP to Human Resources.”
Here are some tips for obtaining the information you need moving forward:
  • Request the SSNs of all dependents at the time of hire of an employee as part of part of their required paperwork. (There are other reasons you may need a dependent’s SSN, such as the Medicare Data Match program). 
  • Schedule a year-end clean-up project to collect any missing SSNs. Think about any marriages or births during the past year, or other instances where you may not have new dependent SSNs.
  • You don’t need to request an SSN from a terminated EE for the purposes of ACA reporting.
  • If you cannot obtain a dependent’s SSN, you can use the date of birth instead. You may need to prove to the IRS that you made at least three attempts to obtain the dependent’s SSN.
We will certainly hear more about the ACA reporting in the coming year, so stay tuned!
Read 1613 times Last modified on Monday, 14 September 2020 19:24
Tonya Young

Tonya is our Senior Account Manager and brings eleven years of prior insurance company expertise to Fall River, having worked at Anthem Blue Cross and Great-West Healthcare (now part of CIGNA). Tonya holds a Bachelor of Science in Psychology from Texas A&M University. Originally from Minnesota, she loves the Colorado outdoors and enjoys family time with her young daughter.