5 Affordable Care Act Reporting Tips for SDVOSB
SDVOSB Should Comply with the ACA Requirements
The attempt to repeal the Affordable Care Act (ACA) has failed once again. Despite the promise of the administration to pursue resolving issues, a new legislation being introduced is uncertain. This is why an SDVOSB is still required to comply with the ACA.
1. Know Which Employers are required to comply with the ACA
An SDVOSB who has more than 50 full-time or full-time equivalent employees must give benefits under the Affordable Care Act. The following formula should be used:
Workforce size = (Number of full-time equivalent employees per month of the previous year + Number of full-time equivalent employees per month of the previous year) / 12
2. Find out the Type of Reporting Required by the ACA
An SDVOSB should accomplish Form 1095-C together with the 1094-C transmittal sheet. These forms will serve as confirmation that full-time and full-time equivalent workers receive minimum essential healthcare under the law. Form 1095-C indicates the type of healthcare given by a small business and period of coverage. On the other hand, Form 1094-C provides additional information about the SDVOSB, number of workers and 1095-C forms given. Those who file the forms electronically are given more time.
3. Take Note of the Deadline for Filing the Forms
The deadline for submission of the forms is now earlier as compared to last year.
· January 31, 2018 – provide copies of Form 1095 to the employees
· February 28, 2018 – paper filing of Form 1095-C and Form 1094-C to the IRS
· March 31, 2018 – electronic filing of Form 1095-C and Form 1094-C to the IRS
4. Learn the Penalties for Failing to Meet ACA deadlines
Those who fail to meet the deadline or submit inaccurate information may incur penalties of up to USD 260 for each filing. The same penalty also applies to those who don’t give copies of the forms to employees or the IRS. A small business with more than 250 employees is required to file electronically.
5. Understand Employer Shared Responsibility
The Employer Shared Responsibility provision requires an SDVOSB to explain key information about health coverage to the IRS. This includes verifying if the minimum essential coverage (MEC) is being met. Those who fail to comply must pay USD 2000-3000 for each employee not covered.
ARCHER JORDAN Helps Ensure Your Compliance with ACA Requirements
The above list is just an overview of the major requirements under the Affordable Care Act. There are other regulations an SDVOSB should comply with. Ask our team in ARCHER JORDAN today how our services can help you succeed in running your business.