Last year, when the IRS finalized their 6055/56 penalties the clear message was simple: “Just file and you will be OK.” Even if your forms were not coded perfectly, you want to make sure your file to avoid the jaw-dropping $500 per form with no cap penalty. So employers that were holding out in late December for some additional change in the law seemed to be playing with fire.Read More
On Sept. 16, 2015, the IRS finalized these ACA coverage reporting forms and instructions:
The new instructions clarify a couple of key areas that will simplify how employers file under IRS 6055 and 6056. We have listed these notable changes below: COBRA reporting
The 6055 and 6056 tax filing has many employers and their advisers up in arms for the upcoming tax filing. The increased penalty amounts announced in July are alarming. A single 1095-C form violation could result in a penalty of $500 per form, with no cap if the employer shows intentional disregard — basically skipping out on the filing for 2015. A 500-person firm in this case would pay $250,000 in penalties. The good news is many employers can get a break of some sort for 2015.Read More
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:Read More
It’s kind of a bold statement, I know. But after countless conversations with brokers struggling with 6055 and 6056 concerns, a decent number of their applicable large employer clients are challenged to find practical solution for this reporting.
Normally, they would lean on their payroll and HR system to deliver an option for generating forms 1094 and 1095 C in 2016. And, some will. However, many inquiries into several HR and payroll companies seem to indicate either a lack in functionality and preparedness or a big jump in cost to get the job done.Read More
During the late ’90s, when employee self-service was making its break into the HR market, many of us were mesmerized with the new vendors that entered the market demonstrating Web-based benefit enrollment solutions.
At that time, the concept of no longer having to use forms, applying eligibility rules automatically, collecting elections and delivering enrollment data to carriers and payroll systems seemed like a game-changer in our business. That was more than 15 years ago, and yet today many employers are still using paper to enroll their employees.Read More
When I examine a business problem I often find myself coming back to the classic fairy tale, Goldilocks and the Three Bears. One area that aligns with Goldilocks’ concept of finding what is “just right” for her needs is the quest to find the right approach for filing and reporting under IRS 6055 and 6056, as required by the Affordable Care Act.
Having the ability to track and manage the required data should be happening now. It includes completion of 1094 and 1095-C forms, distribution of these forms to employees by January 2016, filing of these forms to the IRS by February 2016 and the downstream electronic filing by March 2016.Read More