Deadline Extended to Provide Employees with ACA Form 1095-C

Jan 15, 2018
| Anissa Kurtz
ACA Deadline Extension Form 1095-C

With the New Year now upon us, it’s critically important for employers to continue to track changes and updates to the Affordable Care Act (ACA). Last year was filled with extreme uncertainty surrounding ACA regulations, and it is likely that this will continue in 2018.

Any changes that do occur to ACA regulations could have significant business impacts for employers throughout the United States. We have already seen ACA and other healthcare premiums rise to record highs in 2018, and further changes could have similar impacts to the healthcare industry.

However, one recent ACA-related update is one that employers may not mind hearing. Just last month, the I.R.S. announced that they will be extending the filing deadline for an important ACA form that directly impacts businesses.

I.R.S. Extends the Due Date for Form 1095-C to March 2, 2018

On December 22, 2017, the I.R.S. announced that they would be extending the deadline for employers to provide Form 1095-C to employees. Initially due on January 31, 2018, the extension now gives employers until March 2, 2018, to provide these important ACA forms to their employees.

Employers don’t have to worry about asking or applying for the extension, as the I.R.S. will automatically apply the extension to all eligible employers. The idea to give the extension came after the Treasury Department and I.R.S. decided that employers and insurance providers needed additional time to gather the necessary information and prepare accurate forms.

The Form 1095-C is important as it helps employees determine if they are eligible for certain tax credits granted under the Affordable Care Act. It’s also important for employees and employers to note the Form 1095-C is not required to file individual tax returns, so the extended deadline for employers to provide the forms to employees shouldn’t impact tax season.

Which Employers Are Impacted from the Extension?

Not all employers are impacted by the Affordable Care Act and its regulations, including Form 1095-C and this new deadline. According to ACA guidelines, only Applicable Large Employers (ALEs) are responsible for complying with ACA laws. These are employers with 50 or more full-time employees.

If an Applicable Large Employer fails to provide its employees with Form 1095-C, they will be in violation of Affordable Care Act regulations. This could result in significant penalties for employers, especially now as the I.R.S. is prepared and able to hand out fines to employers who aren’t compliant with ACA guidelines.

It’s important for employers to know that the Affordable Care Act is still that law of the land, and that complying with all ACA mandates and regulations is a must. This is why staying up-to-date with the latest news surrounding the Affordable Care Act is so important.

Employers Need to Keep Track of the Latest ACA News

Much like last year, 2018 is gearing up to be an eventful year for U.S. healthcare and the Affordable Care Act. With some ACA regulations already being phased out, there could be numerous additional impacts for employers in the coming months.

Since HR and employment law compliance is more important than ever, it is critical for businesses to continue to meet the various ACA mandates, guidelines, and regulations that are still the law in the United States. Failing to do so could cost companies thousands of dollars in fines and penalties.

To prevent ACA and HR compliance issues from arising, there are a few resources available. Reaching out to your benefits broker can help provide you with guidance and can assist with finding compliance solutions for your business.

Additionally, both benefits brokers and small business leaders can reach out to Extensis for assistance with compliance and risk management needs. Our ACA experts can assist small businesses with maintaining compliance with various ACA and HR regulations.

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