Affordable Care Act 2023: Employer Quick Tips

The Affordable Care Act 2023 filing deadlines for the 2022 tax year are nearly here. BASIC is here to offer some quick tips for employers so you can stay compliant and understand the risks of failure to file or late filing.

Reminder: The IRS Permanently Extended ACA Form Furnishing Deadline

The IRS has recently permanently extended the deadline for Applicable Large Employers (ALEs) and insurers to deliver the required forms to individuals. Previously, employers were accustomed to annual deadline extensions, but the IRS has now changed the official regulations to extend the furnishing date for these forms to individuals.

Please note: This permanent extension does not apply to filing these forms with the IRS, only furnishing to individuals. For a complete explanation of this change, see our previous blog post that outlines the change in detail.

Important Dates: ACA Filing for 2022 Tax Year

For the 2022 tax year, employers that sponsor self-funded plans (level-funded medical plans, some HRAs, including ICHRAs, etc., are required to furnish 1095-B forms to its current and past employees. ALEs (employers with 50 or more employees during the previous calendar year) are required to furnish 1095-C forms to its current and past employees by March 2nd, 2023. If an ALE also has a self-funded medical plan, they can use the 1095-C forms for both mandates.

ALEs must file Forms 1094-C and 1095-C to the IRS by February 28th, 2023 if filing with paper or by March 31st, 2023 if filing electronically. There is currently no extension for the deadlines to file with the IRS. Electronic filing is required for companies with 250 or more filings (see new proposed regulation below regarding e-filing).

Both failure-to-furnish and failure-to-file (or late filing) each have penalties of $280 per return, and penalty amounts double if non-compliance is ruled to be intentional.

For example, an ALE or an employer with a self-funded health plan, who fails to furnish information returns for its 200 employees would be liable for a $56,000 penalty assessment. If the employer also fails to file the return with the IRS, this penalty doubles and would be a total of $112,280 (the extra $280 is for the IRS 1094-C return plus the same amount for all the employee statements. Penalties deemed intentionally failing to file can double these fees.)

BASIC Can Help Employers with ACA Filing and Compliance – ACA Elevate is an Automated Solution for Employers!

BASIC’s ACA Elevate is a stand-alone solution that generates applicable 1094-B, 1095-B, 1094-C and 1095-C forms and electronic filing with a simple upload of an MS Excel workbook through our ACA portal. ACA Elevate clients receive compliance support from BASIC’s team of experienced professionals.

Since 2015, we’ve helped all types of companies comply with the ACA by furnishing over 2,000,000 forms.

BASIC ACA Elevate covers what employers need, including: