Understanding Your ACA Reporting Requirements Ahead of the Season
CONFESSIONS OF A FORMER SR. ACCOUNT MANAGER
October 26, 2021
New 1095-C Forms for 2021 ACA Filings
January 10, 2022
By Gargi Talegaonkar, Product Manager
If you haven’t started with ACA reporting, now is the time.
Who does the IRS require to report?
There are two sections of the IRS Code that defines who is required to report health insurance coverage information to the IRS.
Under Section 6055, any individual or organization that provides minimum essential health insurance coverage to individuals must report this information to the IRS. Few examples are government sponsored plans, individual market plans and employer self funded plans. These entities are generally required to file 1095B forms to the IRS
Under Section 6056, any employer with 50 or more full-time/ full-time equivalent employees (ALE) is required to provide minimum essential coverage health insurance and report this coverage both to the IRS and the respective employees. ALEs are required to file coverage information on 1095C forms.
When are the deadlines for reporting?
All paper filed forms must be filed with the IRS no later than February 28, 2022, however, if you choose to e-file, the forms are not due until March 31, 2022. Employers filing over 250 forms are required to e-file.
Are there any changes to reporting requirements for 2021?
IRS Adds New ICHRA Codes on Line 14 of 2021 ACA Form 1095-C. In 2021, the IRS released a Form 1095-C draft, which adds two new 1095-C codes for employers to meet the ICHRA reporting requirements.
| 1T | The Individual coverage HRA offered to the employee and spouse (no dependents) and affordability was determined using the employee’s primary residence location ZIP code. |
| 1U | The Individual coverage HRA offered to the employee and spouse (no dependents) and affordability was determined using the employee’s primary employment site ZIP code affordability safe harbor. |
Are you ready to get started?
CXC is ready to help fulfil your ACA requirements for tax year 2021. We offer a comprehensive Full-Service solution for your ACA needs.
We can help you determine employee eligibility for coverage, track variable hour employees, calculate and generate codes based on employee records or generate forms and e-file.
CXC Solutions offers the industry standard in ACA compliance services. If your organization is seeking assistance for your ACA filing needs please contact us at info@cxcsolutions.com or go to https://www.cxcsolutions.com/contact/
