The ACA (Affordable Care Act) is an incredibly crucial and notably difficult regulation for employers to monitor and comply with. Since the enactment of the ACA’s employer mandate, employers are required to file this yearly report- to the IRS (Internal Revenue Service) on the health insurance coverage offered to their full-time workforce with 50 employees or more. The fluctuations in the federal ACA requirements have presented new challenges each year, with many employers becoming a victim of ACA late filing. Even the state ACA legislation changes can be more challenging to interpret and difficult to keep a track of.
Employers failing to file ACA in time can be fined up to $280 per return, with a maximum annual penalty of $3,392,000 million. From an employer's perspective, it would be a wise decision; to hire the services of ACA Compliance Solutions Services Inc. With over 50 years of experience, the experienced ACA experts will work alongside the employer; in gathering all necessary data, performing testing, and e-filing to the IRS guided by the latest technology.
What are ALEs?
• Employers with 50 or more full-time employees in the previous calendar year come in the category of Applicable Large Employers (ALEs).
• The requirement to fulfill some specific reporting obligations under the ACA.
• Failing to comply with those requirements will be held accountable to face sharp financial penalties.
• Incorrect or late filing of annual reports as per ACA regulations can add up quickly and complicate the procedures ahead.
General rule of ACA reporting
The foremost and general rule of ACA reporting requires the ALEs to report whether they offered minimum and affordable coverage and provided minimum value to their employees or not.
Various employers with self-insured plans also report months of health insurance coverage for all enrolled employees. For each of the permanent employee’s ACA reporting, employers need to provide IRS Forms 1094C and 1095C. Employers must then file these forms to the IRS before the last date. Companies with more than 250 filings must file it electronically. Currently, the IRS doesn’t offer an extension for the deadlines in regards to the last date of filing.
If an employer fails to furnish the required details and fails to file the ACA, then he/she has to pay a penalty of (for each) $280 per return. If the non-compliance is ruled to be international, the penalty amount doubles to $280.
ACA late filling is far better than not filling at all
Late filing penalties are already very high. Till now, failing to file complete and accurate ACA forms has penalties of $280 per entry, with a maximum total penalty rising to $3,392,000 (depending on an employer’s gross receipts).
Filing the ACA within 30 days of the deadline has some relief for the employer as the penalty amount decreases from $280 to $50 per form. If you cannot file the forms before the new due date, i.e., April 30, the penalty amount comes down to $170 per filing for the next due date, i.e., August 1. Depending on the number of employees on your payroll, the reduced penalties mean- you can save thousands or even millions of dollars.
However, if you have not submitted the required forms intentionally and the IRS can determine that- the penalty amount increases to $560 per form with no cap on the maximum penalty amount.
If your business has failed to meet the IRS annual deadline, contact ACA Compliance Solutions Services Inc. to help you file for an extension and get all the filings completed while reducing the penalty amount. With the ACA expert's skills, experience, and knowledge, you will never have to pay any penalty for ACA late filing. Investing in ACA Compliance Solutions Services Inc. will ensure accuracy across all ACA forms and reporting, as well as save you valuable time.
