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Obamacare Deadlines for Employers

Obamacare deadlines for employers

Subject to confirmation from the IRS, the Obamacare deadlines for employers have been released. The ACA has laid down some requirements and deadlines which every HR, payroll, and benefits manager should comply with in regards to forms 1094-C/1095-C for employees. Failure to meet the deadline attracts a penalty. This post will further take a look into this issue, explore the Obamacare employer mandate, reporting requirements for employers and state the penalties for employers who fail to comply with Obamacare deadlines.

Obamacare Deadlines for Employers

The Obamacare deadlines for employers are stated below:

• Thursday, January 31, 2019
Deadline to furnish Form 1095-C to employees.
• Thursday, February 28, 2019
Deadline to file Forms 1094-C/1095-C if filing by paper.
• Monday, April 1, 2019
Deadline to file Forms 1094-C/1095-C if filing electronically.

Monday, April 15, 2019
Tax Day! Individual tax returns are due. Employees should include healthcare coverage information on their individual returns.

The Obamacare Employer Mandate

The Obamacare employer mandate is sometimes referred to as the employer shared responsibility provisions. This mandate compels every employer with applicable large employers or ALEs to:

• Offer minimum essential coverage and provide “minimum value” to their full-time employees (and their dependents) or
• Potentially forward to the IRS, payment in respect of an employer shared responsibility.
Majority of employers are not subject to the employer shared responsibility provisions since they fall below the ALE threshold number of employees.

Reporting Requirements for Employers

The reporting requirements for employers as directed by the IRS are to submit all IRS required reporting documents for Section 6055 & 6056 (1094-B, 1094-C, 1095-B, and 1095-C). The purpose of these forms is to confirm whether full-time and full-time equivalent employees are getting minimum essential care under the law. The IRS has released a reporting requirement which will guide employers when they are sending 1095-C and 1094-C. Under the law, it is expected of every employer to forward 1095-C to all employees to enable them provide information on their healthcare coverage. Employers are required to send Form 1094-C to the IRS as a cover sheet for the 1095-C forms filed with the agency.

Penalties for Missing Obamacare Deadlines for Employers

The penalties for missing Obamacare deadlines for employers are stated as follows:

Failure to file complete and accurate Forms 1094-C by the deadline attracts a penalty equal to $250 per form, and not exceeding $3 million per year. In addition, failure to file and furnish correct information on Form 1095-C could result in a $500 per form penalty for employers.

For more information please call ObamacareQuotes today at (800) 811-2640