Skip to main content
Menu File a Claim Login
American-Fidelity-logo
Menu
Menu File a Claim Login
American-Fidelity-logo
American Fidelity Logo American Fidelity Logo
  1. Strategy
      •  
      • Employee Benefits
      • Communication and Education
      • Enrollment and Admin
      • HR Assistance
      • Tax Savings
      • Compliance Updates
      •  
  2. Products
      •  
      • Benefits
      • Dependent Verification
      • HR Technology
      • Reimbursement Accounts
      • Retirement Savings
      • Section 125
      •  
  3. Why Us
      •  
      • For Education
      • For the Public Sector
      • For Automotive
      • Account Managers
      • Customer Testimonials
      •  
  4. Blog
      •  
      • Benefits Strategy
      • Reimbursement Accounts
      • Supplemental Benefits
      • Customer Stories
      • Compliance Updates
      •  
  5. Support
      •  
      • COVID-19
      • Employer Assistance
      • Videos
      • Contact Us
      •  
  6. Claims
      •  
      •  
Login
 
 
American Fidelity Logo

Proposed ACA Health Coverage Reporting Relief

 

December 07, 2021

3 minute read

Category: Compliance Updates

Learn more about this blog article

New proposed rules give employers more time to distribute Affordable Care Act (ACA) forms, but no more “good faith” relief for reporting errors.

Automatic 30-Day Extension to Furnish Forms 1095-B and -C

The Internal Revenue Service (IRS) has proposed regulations that, once finalized, will make permanent an automatic 30-day extension for providing Forms 1095-B and C to individuals. A similar extension has been granted for the past several years. This is good news for employers and insurers who in past years have been forced to wait until late in the busy end-of-year tax reporting season to find out if an extension would apply.

Action Required

Deadline

Furnish individual 1095 forms

March 2, 2022

File on paper with IRS

February 28, 2022

File electronically with IRS

March 31, 2022


Alternate Furnishing Method for Part-Time Employees Covered Under Self-Insured Plan

The proposed regulations do not change any of the compliance responsibilities applicable to large employers, who must still issue Form 1095-C to each full-time employee and file copies of each form with the IRS, even if the employee waived coverage under the employer’s plan.

The new rules do, however, propose to make permanent the alternative furnishing method available in past tax years for forms provided to part-time employees (and to non-employees such as COBRA participants) enrolled in self-insured coverage.

The alternative furnishing method involves making copies of 1095 forms available upon request, publishing a statement on the employer’s website, and maintaining this information until at least October 15 each year. Employers wishing to explore the alternative method are encouraged to closely review the requirements.

ACA Compliance Should Remain Top Priority

While this relief is welcome, employers should stay mindful of ACA responsibilities for three reasons:

  1. There is no extension for filing forms with the IRS; that deadline remains the same.
  2. The proposed regulations emphasize that the IRS will no longer grant “good faith effort” relief for minor ACA reporting errors. ACA reporting penalties can add up fast. Even if affordable coverage is offered to all full-time employees, employers still face stiff monetary penalties for late, inaccurate, or incomplete forms.
  3. In states with an individual mandate, including California, Massachusetts, New Jersey, Rhode Island, and Vermont, the state determines reporting requirements including filing deadlines which may or may not line up with IRS timeframes.

Employers are encouraged to work closely with their vendors, service providers, or internal ACA reporting team to ensure a smooth and successful ACA reporting process.

 

This blog is up to date as of December 2021 and has not been updated for changes in the law, administration or current events.

 
  • Tags:
  • ACA
  • Compliance

Share:

 

Related Compliance Articles

 

COVID-19 Relief Ending: Last Minute HCFSA Buys

December 20, 2022

1 minute read

COVID-19 relief is coming to an end. Don’t let your unused HCFSA funds slip away. Here are few tips on how to spend them.

  • Tags:
  • Compliance
  • HCFSA
  • FSA

ACA won’t go away: Are you at risk for being fined?

November 29, 2022

9 minute read

ACA is here to stay. With more and more organizations being fined for missteps in their reporting, being in compliance is more important than ever.

  • Tags:
  • ACA
  • Compliance

2023 reimbursement limits and Social Security wage caps announced

November 07, 2022

3 minute read

The IRS has just announced 2023 reimbursement account limits and Social Security wage caps.

  • Tags:
  • FSA
  • LPFSA
  • DCA
  • HSA
  • HCFSA
  • Compliance

 

This information is intended to be educational. It is general in nature and should not be considered legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

ESB-9125-1221

American Fidelity Assurance Company
americanfidelity.com

https://americanfidelity.com/blog/compliance/aca-reporting-relief/

Site Map

About Us

News Center

Careers

Contact Us

© 2022 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Cameron Enterprises

This information is intended to be educational. It is general in nature and should not be considered legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

ESB-9125-1221

  • File a Claim
    Login
  • Home
  • Benefits Strategy
    • Employee Benefits
    • Communication and Education
    • Enrollment and Admin
    • HR Assistance
    • Tax Savings
    • Compliance Updates
  • Products
    • Benefits
    • Dependent Verification
    • HR Technology
    • Reimbursement Accounts
    • Retirement Savings
    • Section 125
  • Why Us
    • For Education
    • For the Public Sector
    • For Automotive
    • Account Managers
    • Customer Testimonials
  • Blog
    • Benefits Strategy
    • Reimbursement Accounts
    • Supplemental Benefits
    • Customer Stories
    • Compliance Updates
  • Support
    • COVID-19
    • Employer Assistance
    • Videos
    • Contact Us
  • Claims
  • Careers
    • Corporate Careers
    • Sales Careers
  • About Us
  • Site Map

Popular Topics:
  • Register for an Account
  • Forms
  • Unused FSA Funds
  • HCFSA Eligible Expenses
  • Carryovers, grace periods and runoff periods
  • HSA Eligible Expenses
  • HSA Tax Forms
  • Disability Tax Forms