The Small Business Administration has issued a reminder on new reporting obligations for health coverage in 2015. It also advises changes in an important IRS deadline.
The SBA said in a statement under the Affordable Care Act, employers have a new reporting obligation for health coverage in 2015. The purpose of providing information returns to employees is to enable them to determine their eligibility for the premium tax credit and whether they owe the shared responsibility payment for not having required minimum essential health coverage.
Employers with 50 or more employees must provide Form 1095-C to employees. They must also transmit copies of the forms, along with Form 1094-C, to the IRS. Employers with 50 to 99 employees use these forms even though they have no penalty for not providing coverage for full-time employees and their dependents in 2015. Smaller employers who have self-insured plans (e.g., health reimbursement arrangements) use Form 1095-B and 1094-B. If these smaller employers only have coverage for staff with insurance, there is no filing obligation; the insurer completes the form.
The filing deadlines for the forms and transmittal technically is the same as those for W-2s. However, because this is the first year of mandatory reporting, the IRS has postponed the deadline. The applicable forms must be furnished to employees by March 31, 2016 (instead of February 1, 2016). They must be submitted to the IRS by May 31, 2016 (instead of February 29, 2016) if filed by paper, or June 30, 2016 (instead of March 31, 2016) if filed electronically.
For information returns about 2016 coverage that are due in 2017, the same deadline for W-2s will apply (assuming the IRS does not again extend the deadline), the SBA reported.
The SBA also said businesses that fail to meet the deadlines can be penalized. However, it reported the IRS has said it will consider whether companies have taken reasonable steps to meet reporting requirements when determining whether to incur penalties.
