By now, some of your clients have come to you with a problem: How do I address this tax filing for IRS 6055/56? For some reason, their payroll vendor is unable to deliver or wants an arm and a leg to do the filing. You hold out hope that somehow this will blow over and get resolved. But as we get into the summer months, a greater number of your clients lacking in options will be knocking on your door for a solution. You should think of offering one. Here’s why:
1) Your competitors will. More and more brokers and administrators are coming to the realization that the payroll/HR market will not address their clients’ filing needs and, as a result are looking for options. If the client doesn’t need active measurement of variable hour employees the problem is easily solvable.
2) Either way, you are involved in the process. Regardless of which solution delivers the reporting, your employer will need advice on affordability, selection of safe harbor, transition relief, offer of coverage, lowest cost plan and the collection of employee and dependent elections. If you need to furnish this, you might as well own the process.
3) You can charge for it. Providing 6055/56 reporting as a service can be a money maker for an agency, even though staff time will be required.
4) It’s sticky. Brokers who manage the setup and delivery of a client’s Affordable Care Act reporting will help save their client from the downsides of not filing on time, and the set-up can be repurposed in the following tax year.
5) It can attract new clients. The number of applicable large employers looking to create 1094 and 1095 C forms is staggering. These clients are in a desperate situation to deliver the reporting. If you can solve this problem for them you will certainly get their attention.