Common Affordable Care Act Compliance Mistakes

 

Tonya Rule – Hi, I’m Tonya Rule and I work at Eide Bailly. I specialize in the Affordable Care Act. Today we’re going to talk about some common mistakes that employers often make when it comes to their 1095C forms.

Mistake #1: Form Errors

Tonya Rule – So most commonly we see incomplete forms or mismatching of form codes; and what I mean by that is that not all the boxes are always completed on the 1095C or else if you look at line 14 and line 16 on the 1095C, they should be matching. They should make sure that they don’t use codes that do not mean the same thing.

Mistake #2: Thinking there is no filing requirement

Tonya Rule – Often times, businesses will feel that they don’t have a filing requirement, so then they don’t file their forms obviously. What is making them think that is because they’re not counting their full time equivalent employees correctly, or they might be part of a controlled group and that controlled group with all of its full time employees is over the threshold to be a large employer, but maybe one of the entities is a smaller employer with 20 employees. So they feel they don’t have a filing requirement when in actuality they do. Also, plans that are self-funded, always have a filing requirement, even if they are a small employer.

Mistake #3: Form Completion

Tonya Rule – So sometimes clients will not file their forms because they tell me they feel like their insurance company is filing their forms, while the insurance company does have forms to file if it’s a fully insured plan. They do not have the responsibility to file the entities forms so every large employer still has a filing requirement to file their 1095C forms.

Mistake #4: Missing a Step

Tonya Rule – Clients are pretty good about giving their employees a copy of the forms: 1095C forms or the 1095B forms. Sometimes I get a call saying we didn’t realize we also had to submit them to the IRS or they might inadvertently forget to submit them to the IRS. So it’s important in order to avoid all the penalties to make sure you follow all the steps. Give them to the employees and the IRS, remember employees as of now have to be given their forms by January 31 and the IRS has to get a copy by either February 28, if you paper file or March 31 if you e-file the forms.

Mistake #5: Omitting Employees

Tonya Rule - Retirees and part-time employees still need a form if the plan is self-insured. So often times, employers will think they only have to give the forms to full-time employees but remember, if you’re self-insured; all employees that participate in the plan, do need a form.

Let Us Help You!

Eide Bailly is here to help you avoid unnecessary penalties, whether it’s helping you with the forms, reviewing your form, or just answering questions. Please contact us if we can be of assistance.

Stay current on your favorite topics

SUBSCRIBE

Learn More

Take a deeper dive into this Insight’s subject matter.

Health Care Reform

Latest Insights

January 19, 2021
Blog
We think we can all agree 2020 was a year unlike any other. The coronavirus pandemic wreaked havoc on our economy, our national politics and for most, our personal lives.
January 18, 2021
Blog
IRS announces February 12th as filing season start date. Biden's relief plan aimed at low- and moderate-income households. What to know about PPP options for 501(c)(6) organizations.
January 18, 2021
Article
The best time to start succession planning is the day you open your business. Otherwise, the second-best time is right now. Here’s how you can get started or keep moving.
January 18, 2021
Article
You’ve probably heard of Employee Stock Ownership Plans (ESOP), but how do you determine whether it’s the right choice for your business? We break it down here.
January 15, 2021
Blog
Biden unveils $1.9T COVID relief plan. Senator Ron Wyden will look to reform capital gains. Final 2020 estimated payments due today. 6 Tax and financial tips for the next lottery winner.
January 15, 2021
Article
501(c)(6) organizations are now eligible to apply for PPP loans. Here’s what you need to know if you are considering applying for a PPP loan.
Find A Location