In your business we know that sometimes there are fires to put out. In our business, we too find ourselves helping clients extinguish such fires, specifically in mitigating the effects of new requirements created under the expanding federal employee-provided health insurance mandates. Be assured that with the upcoming March 31 expiration of the first 1095-C filing deadline under the Affordable Care Act, the fires have started for many and have great potential to get out of hand.
The bad news for many businesses and municipalities is that as of April 1, 2016, any employer with 50 or more full-time employees who has not yet filed the mandatory IRS 1095-C form for every full-time employee will be subject to a penalty of $50 per late form. What is worse is this penalty will very soon double to $100 for every late forms filed within 30 days after the initial March 31 deadline.
What is still and much worse is that as of August 1, 2016, the same $50 initial fines will quintuple to $250 per form. And can it get even still worse? This is the IRS we’re talking about, so of course it can: A total failure to comply with the mandatory 1095-C filing requirement can bring potential fines to a staggering $500 per form, or up to $125,000 for an employer with 250 employees. Feeling the heat yet?
Chances are good that you or someone you know are on the precipice of big trouble in navigating the first 1095-C deadline of March 31, 2016. This can be an extremely costly problem and as noted above, it can only get worse for those who foolishly keep their heads in the sand as to this new requirement under the Affordable Care Act.
The Affordable Care Act is one of the largest and most complex pieces of legislation ever passed, and it has created incredible administrative burdens for organizations in numerous industries.
New compliance requirements include having to offer acceptable coverage to workers averaging only 30 hours per week (a substantial reduction in the previous “full-time” threshold – a fact of which many may be unaware) and report this information to the government. At E.D. Bellis we recognized early the confusion that the ACA has caused, and have come up with a complete ACA compliance and reporting solution to help companies battling to comply.
If your organization is required to submit over 250 forms, you must file electronically, and if you do not work through a vendor the hopelessly convoluted Transmitter Control Code (TCC) process will undoubtedly challenge any company’s internal staff due to the wholesale inefficiencies created by the Internal Revenue Service. Many are unaware and others have not received confirmation of their authoritative transmittal which is necessary in order to electronically interface with the IRS
As such, the time for full compliance with the 1095-C requirement has almost run out, and the penalties are scheduled is to get more and more stringent over time. The next penalty phase — which will raise the per-form penalty to $100 – is triggered for those who fail to complete their 1095-C compliance by 30 days from the initial March 31, 2016 deadline.
Potential Penalties for Applicable Large Employers Missing March 31, 2016 and Subsequent Deadlines:
|Reason for Penalty||Standard Penalty||Maximum Penalty|
|Forms filed or provided late (i.e., after 03/31/16), but within 30 days)||$50.00 per report||$529,500 (previously $500,000)|
|Forms filed or provided late, but by August 1||$100.00 per report||$1,589,000 (previously $1,500,000)|
|Forms filed or provided late, but after August 1||$250.00 per report||$3,178,500 (previously $3,000,000)|
|Complete compliance failure||Up to $500 per report|
Do You Need Last-Minute Assistance?
Our team of consultants can help solve this last-minute problem. In view of the time necessary for the data gathering, analysis, and form preparation and submittal processes, we must require clients with over 250 or more full-time employees to both engage us and then submit the necessary and finalized 1095-C reporting data to E.D. Bellis no later than 5:00 PM Central Time, Friday, March 25th to avoid the first deadline, Friday, April 15, 2016 in order for us to process this information in time to submit the 1095-C’s to the IRS by the second IRS penalty deadline to file within 30 days of the March 31, 2016 deadline. For potential clients with less than 250 full-time employees, our deadline is 5:00 PM Central Time, Monday, March 28, 2016. Please note that time is absolutely of the essence and E.D. Bellis cannot guarantee that we can accept every prospective client for this obviously pressing March 31 deadline, so you must act immediately.
If you are unable to meet either timing threshold, we will of course still be happy to assist you in 1095-C filings, but please be aware that they may be subject to applicable late filing penalties associated with the March 31 deadline (yet you can still avoid the $250 per form penalties associated with the missing the third deadline of August 1, 2016). We will work with you and the IRS to process this requirement as efficiently as possible and mitigate any work to address any issues. Then we will work with you over time to correct, streamline and internalize your ACA processes with the goal of a solid compliance structure going forward.
Why Choose E.D. Bellis
E.D. Bellis delivers comprehensive consulting to help you navigate the maze of the Affordable Care Act and understand what it means for your business. We provide not just access to information and answers, we project the ACA’s impact on your balance and P & L statement. We analyze how your employees are impacted and then develop an action plan and work in conjunction with your financial team to develop your ACA roadmap to success.
With experience working on the ACA for over six years (even prior to its enactment), relationships inside the beltway and with other key stakeholders, E.D Bellis has the expertise to help with ACA compliance and partner long-term by providing ongoing and reliable service for management of government and regulatory headaches created under the ACA.