2022 is about to end and employers will once again need to shift their focus to ACA compliance. As a responsible employer, you must know the ACA deadlines to stay compliant with the IRS mandate.
The Affordable Care Act requires everyone to be covered under a healthcare plan and imposes certain coverage rules on health insurers. The law introduced three tax forms relevant to individuals, employers, and health insurance providers.
Form 1095-A – A Health Insurance Marketplace Statement
Form 1095-B – Health Coverage
Form 1095-C – Employer-Provided Health Insurance Offer and Coverage
Under the Affordable Care Act, every individual must have medical health plan coverage. Individuals may receive one or more versions of IRS Form 1095 depending on the kind of health coverage they had. The 1095 form proves that individuals had coverage for the months listed on the form.
As the tax season has already started, it is important for all the employers subject to the Affordable Care Act (ACA) to issue reporting forms to employees and file with the IRS without any delay.
ACA Deadlines for 2022
The following table will help you to remember all the ACA deadlines for sending reporting forms to the employees and for paper filing or e-filing them with the IRS.
|ACA Reporting Forms||2022 Tax Year Deadlines
(forms filed in 2022)
|1095-C due to employees||January 31, 2023|
|1094-C and 1095-C due to IRS if paper filing||February 28, 2023|
|1094-C and 1095-C due to IRS if electronic filing||March 31, 2023|
|Late filing deadline to file 1094-C / 1095-C||August 1, 2023|
The ACA deadlines for furnishing copies to employees, paper filing, or e-filing to IRS are as follows:
- You must furnish Form 1095-C to your employees by January 31, 2023.
- The due date for filing Forms 1094-C and 1095-C with the IRS is February 28th, 2023 if filing by paper, and March 31st, 2023 if filed electronically.
ACA Penalties for Late Filing (Small Businesses)
The penalties range from $50-$570 per missed ACA form, depending on how late the forms were submitted.
|Time After ACA Deadline||Penalty|
|If you file the correct form within 30 days of the due date||$50
|If you file between 30 days of the due date & August 1||$110
|Filing on or after August 1st||$280
|Intentionally neglecting to file||$570
In the above case, the IRS considers you to be a small business if you’ve earned an average of $5 million or less in annual revenue for the past three tax years.
Don’t rely on the hope that the IRS will extend the ACA deadlines. It will be better if you plan ahead to meet the deadline to avoid penalties and stress. If you think you will miss the deadline, then you may apply for a 30-day extension from the IRS by filing Form 8809, Application for Extension of Time to File Information Returns.
The reason for the extension should be explained clearly on Form 8809 and it must be signed under penalty of perjury. It will be best if you file Form 8809 as early as possible when you realize meeting the deadlines isn’t realistic and you need more time.
Note: You cannot request a second extension.
We hope you will be feeling prepared, informed, and ready to send 1095 reporting forms to your employees and IRS before the ACA deadlines.
Stay on top of compliance management with our IRS-approved ACA solution – CheckMark 1095 software, a low-cost solution that allows small and medium-sized businesses to report and file or transmit ACA requirements of health care coverage provided to employees and the IRS.
CheckMark 1095 software supports 1094-B, 1095-B, 1094-C, & 1095-C ACA forms. You can create unlimited databases, companies, and employees for General and ALE employers. Based on your requirements, you can choose either the print version or the E-File version. Download a free demo to experience the simplicity and accuracy of our software.
According to IRS, if you are filing 250 or more forms for the calendar year, then e-filing is a must. Else, you can paper file and mail to IRS for less than 250 forms.
If you have any questions about the ACA filing, you can reach us at any time. We’d be happy to help you out.