Greatland Helps Businesses Navigate Affordable Care Act Reporting Requirements
The Big Question Facing Businesses: “Do I Need to File?”
October 29, 2015 | Greatland Corporation | Grand Rapids, MI
Greatland Corporation is reminding companies that calendar year 2015 marks the first time businesses must file the IRS 1095 forms to comply with Affordable Care Act (ACA) requirements. Depending on the size of your business, reporting requirements and forms may vary, and learning the new rules can be daunting.
Employers and insurers are expected to comply with ACA reporting requirements
. Incorrect filings will not be penalized for calendar year 2015 filing (reported in 2016) if employers/insurers file on time and make a good faith effort to comply.
To get ahead of the chaotic tax reporting season, Greatland Corporation
, one of the country’s leading providers of W-2 and 1099 products for businesses, has compiled the ins and outs for those who ask the question “do I need to file?”
Find out if your business needs to file for 2015 to remain compliant by reviewing the guidelines below:
- If your business employs 50 or more full-time equivalent employees and is self-insured, you need to file Form 1095-C Parts I, II and III.
- If your business employs 50 or more full-time equivalent employees and you are NOT self-insured, you need to file Form 1095-C Parts
I and II only.
- If you are a self-insured employer with less than 50 full-time equivalent employees, you are required to file Form 1095-B, Parts I, III and IV.
Full-time employees are defined as those who worked an average of 30 hours or more per week in the preceding calendar year. NOTE: many companies underestimate their true full-time equivalent count by ignoring non-full-time staff. In simple terms, the number of full-time equivalent employees equals the total number of full-time employees (working 30 or more hours per week) plus the number of full-time equivalent employees. Monthly full-time equivalents are calculated by combining the number of hours of service of all non-full-time employees for the month (but not including more than 120 hours of service per employee), and then dividing the total by 120. Using this guideline, you may discover that you have less than 50 full-time employees, but meet the requirements for ACA reporting. Healthcare.gov can act as a helpful resource and has tools such as a full-time equivalent employee calculator to help determine your filing status.
Greatland’s ACA reporting capabilities are offered through its Yearli Desktop
software. These platforms provide useful tools and a support staff that will help businesses understand the required forms and ACA reporting guidelines. Through Greatland, filers can:
- Purchase forms to comply with ACA reporting requirements. Greatland offers various 1095 paper forms in conjunction with the federal version to make sending forms to recipients simpler. Some advantages to utilizing Greatland’s paper forms include:
- Optional folding perforation makes it easier to print, fold and mail to recipients
- Optional recipient copies with instructions
- Optional recipient envelopes designed to match Greatland forms
- Use Greatland to e-file 1095-B and 1095-C along with related transmittal forms to IRS and print and mail copies to recipients
- Use Greatland’s system to enter and track 1095-required data throughout the year
- tay on track with Greatland’s unique employer reporting checklist
- Use the comprehensive “Do I Have To File?” decision tree
With the pressure of new requirements for ACA reporting, it is important that business are also aware of who receives W-2 and 1099 forms. Independent contractors receive 1099 forms and traditional employees will receive a W-2 every year. With 1099 and W-2 reporting penalties increasing again beginning January 1, 2016, it is even more important for businesses to ensure that all wage and income filings are completed accurately and submitted on time.
A W-2 is the form employers use to report annual pay and withholding information. Due to the typical filing deadline (January 31) falling on a weekend, the deadline for employers to mail the 2015 Form W-2 to employees is February 1, 2016. Employees will receive four copies of this form to report federal, state and local income, and maintain a copy for their records. It is suggested that taxpayers hold on to W-2 forms for a minimum of three years to ensure proper documentation if needed.
There are a variety of 1099 forms that account for other sources of income. Issuers must mail out these 2015 forms to recipients by February 1, 2016. However, 1099 forms do not have to be issued to the IRS until February 29, allowing businesses to catch potential mistakes and correct them. This is also true for W-2s, although they are issued to the Social Security Administration rather than the IRS. In addition to the standard W-2 and 1099 deadlines, Form 1095 must also be issued to recipients by February 1, 2016.