The Affordable Care Act (ACA) mandates that certain employers must report information regarding employer-provided health insurance offered and covered to employees and file that information with the IRS annually. 2017 Form 1095-B or 1095-C was due to employees on March 2, 2018; forms were due to be filed with the IRS by February 28 if using paper forms or April 2 if e-filing.
Applicable large employers (ALEs), as well as small employers that are members of an affiliated or controlled service group, are required to file forms 1095-C (Employer-Provided Health Insurance Offer and Coverage), and 1094-C (the associated transmittal), each year. Self-insured small employers must file forms 1095-B (Health Coverage), and 1094-B (the associated transmittal), annually.
If you missed the April 2 deadline for filing information returns, your organization could face stiff fines, however filing late is better than not filing at all as IRS penalties are reduced for employers filing within the following time frames:
- Employers filing within the first 30 days following the deadline are penalized at a rate of $50 per return to a maximum penalty of $536,000 for ALEs and a maximum of $187,500 for small businesses with gross receipts of $5 million or less.
- Organizations filing after the first 30 days, but before August 1, are subject to a $100 penalty per return, maximum $1,609,000 for ALEs, $536,000 maximum for small businesses with gross receipts of $5 million or less.
- Companies that fail to file will be subject to a $260 per return penalty with a maximum penalty of $3,218,500 for ALEs and $1,072,500 maximum for small businesses with gross receipts of $5 million or less.
Organizations determined by the IRS to have intentionally neglected to file may receive a $530 penalty per return with no ceiling on the maximum penalty.
For more details, we recommend Gerry Nelligan’s article on the SHRM website, Failed to Meet the ACA Filing Deadline? What To Do Now.