Employer Shared Responsibility
Update: IRS Extends ACA Filing Deadlines
On December 28, 2015, the IRS granted automatic extensions to applicable large employers (employers with 50 or more full-time employees, including full-time equivalents), or ALEs, for filing Affordable Care Act Forms 1094-C and 1095-C. The new deadlines are:
- March 31, 2016, to deliver the 2015 Form 1095-C to employees.
- May 31, 2016, to manually file the 2015 Forms 1094-C and 1095-C with the IRS (for employers not filing electronically).
- June 30, 2016, to electronically file the 2015 Forms 1094-C and 1095-C with the IRS.
If your business is subject to the employer shared responsibility (ESR) provisions of the Affordable Care Act, you are responsible for:
- Providing detailed reporting to the IRS on how many full-time employees work for your business.
- Identifying all full-time employees as defined in the law.
- Determining the coverage, if any, you offer to these full-time employees.
- Tracking personnel changes that may put your business over the 50 full-time employee (including full-time equivalents) threshold subject to the provisions.
- Assessing the group coverage you currently offer to see if it meets the affordability and quality standards established in the ESR provisions in the ACA.
Employers need to complete at least twelve months of extremely complex and difficult tracking and reporting on employee hours, wages, and coverage to determine how many full-time employees they have, and the adequacy and affordability of the coverage (if any) offered to these employees, in preparation for open enrollments and offering health coverage the coming year.
Applicable large employers that fail to comply can face tens- to hundreds-of-thousands of dollars in penalties assessed based on size:
- 100 full-time employees: $40,000 per year
- 200 full-time employees: $240,000 per year
- 500 full-time employees: $840,000 per year
Paychex Can Help You Avoid These Costly Scenarios
No matter the size of your business, Paychex and its unique ability to integrate payroll with benefits gives you the analysis, reporting, and monitoring to help determine:
- If your business is an Applicable Large Employer
- How many full-time employees you have based on the law’s definitions
- Whether you offer adequate and affordable coverage for clients with insurance service through Paychex Insurance Agency
Paychex will also prepare and file the new, complex tax Forms 1094-C and 1095-C for you!
Act Today on the Affordable Care Act
Call 844-802-2248 or complete the form below to have a Paychex representative contact you.