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Navigating the Changes to Affordable Care Act Deadlines

health coverage tax credit

On December 28, the U.S. Department of the Treasury and the Internal Revenue Service announced a limited extension to the 2015 deadlines for Affordable Care Act (ACA)1095 reporting.
Reporting is still required. However, the IRS made this decision based on opinions of stakeholders who felt more time was needed for businesses to prepare for ACA reporting, and for software companies to complete their ACA reporting solution.
What does this mean for you?
You now have more time to prepare your healthcare coverage information and complete reporting. Two months more to be exact.

Updated ACA 1095 Reporting Deadlines
Statements due to recipients/employees March 31, 2016
Paper filing due to the IRS May 31, 2016
Electronic filing due to the IRS June 30, 2016

The good news: You can still complete your ACA reporting now. In fact, the IRS strongly encourages it and we agree. ACA electronic reporting solutions in both Parish Data System and ACS Financials are ready to accept your 1095 filings now.
This is just a temporary delay, next year’s ACA reporting due dates will still be in line with usual W-2 and 1099 reporting deadlines. Conforming to these deadlines now means you will be better rehearsed for completing ACA reporting in 2017. It also means that you can start preparing now for reporting on healthcare information for tax year 2016.
An important question
This delay in ACA reporting deadlines has raised an important question: Can my employees file their 2015 tax return without a copy of their 1095?
The answer is yes. If you do choose to delay your ACA reporting in accordance with the new deadlines, your employees will still be able to complete their 1040 prior to receiving their copy of form 1095.
ACA forms do not need to be attached to a 1040, and should not be. The employee simply needs to check a box on the form to indicate that they had full-year health care coverage in 2015.

Jason Jenison is the Partner Relationship Manager for Nelco. He has a combined 10 years of experience in W-2 & 1099 reporting solutions, business development and customer service. An alumnus of Cornerstone University in Grand Rapids, Michigan where he earned a bachelor’s degree in Political Science and Bible, Jason enjoys spending his free time with his wife and two children.

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