ACA Reporting Still Required for 2018 Tax Year – Are You Ready?
December 18, 2018
By: Rick Roddis, President of ComplyRight Tax Solutions, the leading manufacturer of 1099, W-2 and ACA tax forms, envelopes and software.
Are you unclear about the status of the Affordable Care Act (ACA) … or whether you’re still responsible for reporting health plan coverage?
You’re not alone! The ACA has been the subject of vigorous debate by the current administration, in addition to an area of attention under the 2017 Tax Cuts and Jobs Act. But despite the talk of an overhaul, very little has changed with the reporting requirements for applicable employers. The ACA is still the law of the land – and the responsibility to prepare and report remains.
Let’s look at the key factors you need to know to comply with this year’s tax reporting requirements.
The Current Status of the ACA
The ongoing efforts of the current administration to “repeal and replace” the ACA have given many employers the wrong idea that compliance with ACA reporting requirements is optional.
Further confusion resulted from the Tax Cuts and Jobs Act passed in late 2017. The tax legislation modified the individual mandate requiring individuals to have ACA-compliant health coverage (by removing the penalty for non-compliance). But this doesn’t go into effect until 2019 and, more important, the employer mandate still stands.
This means all affected employers – mostly applicable large employers (ALEs) with 50 or more full-time (or full-time equivalent) employees -- must file 1095-C reporting forms and supply copies to employees by the IRS deadlines.
To stay on schedule and avoid IRS penalties, your business must meet the following tax-filing deadlines:
January 31, 2019 – mail employee copies
February 28, 2019 – paper-filing with IRS
April 1, 2019 – e-filing with IRS
Be aware: Missing the deadlines for furnishing and filing ACA forms can cost as much as $270 a return, and intentional disregard can amount to $540 a return.
Also, although you may file Form 8509 for a 30-day extension for filing with the IRS, this does not impact the mandatory Jan. 31 date to furnish forms to employees.
ACA Reporting Tools and Support Are Available
Due to the IRS following through with enforcement – and the increased penalties for non-compliance – it’s critical to stay on track.
Go to Office Depot ACA Tax Forms for a full line of IRS-approved ACA forms, envelopes and software from ComplyRight for all your ACA tax-reporting needs.
All content provided herein is for educational purposes only. It is provided “as is” and neither the author nor Office Depot, Inc. warrant the accuracy of the information provided, nor do they assume any responsibility for errors, omissions or contrary interpretation of the subject matter herein. The information should not be relied upon as replacement for professional tax advice.
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