Though the Affordable Care Act is almost completely implemented, a few significant provisions remain to go into effect. One is the employer reporting requirements. Though the IRS extended the deadlines by a couple months, this provision still takes effect in 2016. Complying with these requirements will likely be a burden on employers, so this presents an opportunity for brokers to guide and support their clients.
What are the Employer Reporting Requirements?
Under the ACA, employers with at least 50 full-time equivalent employees are required to report to the IRS information about the health coverage they offer to their employees. In addition, the employers must report that same information to their employees, so employees can determine if they can claim the premium tax credit on their tax returns.
The original deadlines for this provision were:
- Feb 1, 2016: Notices of health coverage sent to plan participants
- Feb. 28, 2016: Employer filing due to the IRS (if filing a paper form)
- March 31, 2016 Employer filing due to the IRS (if filing electronically)
What are the new deadlines?
In late 2015, the IRS extended the deadlines for employers to meet these requirements. The new deadlines are:
- March 31, 2016: Notices of health coverage sent to plan participants
- May 31, 2016: Employer filing due to the IRS (if filing a paper form)
- June 30, 2016: Employer filing due to the IRS (if filing electronically)
How can brokers support their clients?
Although the deadlines to comply with these reporting requirements were delayed, the delay was only a couple months, so this issue should still be top-of-mind for your impacted clients.
Many in the industry speculate that meeting these reporting requirements will be a burden on employers, especially for this first year. This is a new reporting requirement that is unfamiliar and may pose challenges in identifying and documenting all the needed information. That offers an opportunity for brokers to provide needed service and support to their clients.
For instance, many employers don’t realize that noncompliance could result in a hefty penalty—you can be a trusted partner and deliver that message to your clients. Educate them on the information they must gather and report on, and help them through the process. Brokers who guide and support clients through this reporting provision will set themselves apart from the competition and earn stronger client loyalty.
The Affordable Care Act has been around for six years, but it still offers brokers significant opportunity to provide additional service and support for their clients. To read more about how to guide your clients through the latest ACA changes, read the ebook, Support Clients Throughout ACA Delays.