Affordable Care Act (ACA) reporting for 2019 is just around the corner. From now through March 2020, employers will be focusing on preparing for 2019 ACA reporting, which includes creating and sending 1095-Cs to employees and submitting the transmittal 1094-C to the IRS.
Here are a few best practices to help ensure your company or agency is ready for a smooth 2019 ACA reporting season:
Be proactive in checking for errors in your company’s 2019 ACA data.
Employee demographic data such as zip codes, start dates, termination dates, coverage dates, waivers, and all other pertinent ACA data must be accurate. Checking for errors and correcting them now will save your company time before looming deadlines.
Review previous year ACA data.
What did you learn from previous years of reporting? What were your pain points in preparing and processing your ACA data? Conduct a prior-year audit and identify employees or processes that need attention. (Be careful not to repeat the same mistakes that were made in previous years!)
Stay informed of any IRS rules or changes regarding Forms 1094-C or 1095-C.
The IRS recently posted a notification with “early release drafts” for the 1094 and 1095 forms, but instructed, “Do not file draft forms and do not rely on draft forms, instructions, and publications for filing.” Per the November 13, 2019 notice, the IRS cautions, “Drafts of instructions and publications usually have some changes before their final release.” Make it a point to check the IRS website for final releases. All information about all forms, instructions, and publications is at IRS.gov/Forms.
Plan for March 2, 2020 deadline for 1095-Cs to individuals
The IRS recently extended the deadline for individuals to receive 1095-C forms from employers. The original January 31, 2020 deadline is now March 2, 2020.
Be aware of individual state mandates.
A trend is growing among states to legislate requirements for taxpayers to prove health insurance coverage. Employers must provide coverage data to the state in addition to the IRS. To date, only New Jersey will require ACA reporting on its individual taxpayers for 2019, but other states are following this trend.
Looking for a proven solution for your organization’s ACA reporting needs?
ACA-Track™ is a stand-alone system that integrates with any payroll, time-capture and benefits management system while placing no restrictions on your operational systems. ACA-Track helps your business or organization to evaluate its ongoing state of compliance and provide accurate and timely data and information.
The software electronically creates IRS reports and maintains all ACA compliance data in one location for easy retrieval in the event of an IRS audit. ACA-Track ensures your ability to comply with ACA standards successfully and avoid penalties, fines, and fees.
ACA-Track supports ALL data elements necessary for IRS compliance.