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Navigating ACA Reporting Requirements
The Affordable Care Act (ACA) requires applicable large employers and health insurance providers to report certain information to the IRS each year. When ACA reporting deadlines approach, many companies have questions about meeting these requirements. Whether you are a small business owner, human resources manager, or simply trying to understand your company's responsibilities, our goal is to break down key aspects of ACA filing.
What is the TIN Error Reconciliation Process?
The Taxpayer Identification Number (TIN) is a key identifier used by the Internal Revenue Service (IRS). The TIN Error Reconciliation Process identifies and fixes discrepancies between employee names and associated TINs, usually Social Security Numbers (SSNs).
When the IRS ACA Information Returns (AIR) system flags errors in filings, it issues a report listing employees with name/TIN mismatches. Employers should cross-check this against HR and payroll records to verify identities. Utilizing the TIN solicitation process to correct inaccurate SSNs can prevent future ACA issues, as can implementing an ACA compliance monitoring software.
Recent IRS letters remind employers of penalties for missing deadlines (Letter 972CG) or not filing (Letter 5005-A). After fixing errors, use updated employee data for future 1095-C filings to maintain compliance.
Which Employees Get Form 1095-C?
Applicable large employers (ALEs) must furnish Form 1095-C to full-time employees, defined under ACA as those working 30+ hours per week or 130+ hours monthly. This requirement applies for IRS and state reporting.
ALEs with self-insured plans must also report individuals enrolled, including non-employee dependents. Part-time and seasonal staff who didn’t hit the ACA-defined full-time status any month do not require 1095-Cs.
Which Organizations Must Follow ACA Employer Rules?
The ACA Employer Mandate applies to ALEs with 50+ full-time equivalent employees. ALEs must:
- Offer minimum essential coverage (MEC) meeting value standards to 95% of full-time staff and dependents.
- Ensure affordability for full-time employees based on IRS calculation methods.
What Documentation is Needed for ACA Filing?
Maintaining documentation supporting your ACA reporting is crucial in case of an IRS audit. Examples include:
- Benefits summaries showing coverage details
- Policy guides on filing claims and choosing providers
- Summary Plan Descriptions outlining plan rules
- Premium rate sheets tracking costs
- Payroll spreadsheets recording full-time status
Navigating ACA requirements can feel overwhelming. With evolving rules and regulations, it's easy to feel lost in the details. That's where ACA Reporter comes in. Our team of compliance experts is here to guide you through the entire ACA reporting process. We act as an extension of your team, providing personalized support to reduce the headaches of compliance.
Whether you need help compiling documentation, correcting errors, or simply understanding regulations, ACA Reporter has the tools and knowledge to simplify the process. Partnering with us means you can focus on your core business while we handle the intricate details of ACA mandates. Contact us today to learn more about how we can ease your compliance burden.
