While the recent overhaul of the U.S. tax code repeals the Affordable Care Act’s individual mandate in 2019, nothing is changing for employers. The ACA employer mandate remains in place. Employers with 50 or more full-time or full-time equivalent employees in the preceding calendar year, known as Applicable Large Employers (ALEs), still will be required to file ACA information for the 2017 tax year with the Internal Revenue Service. However, the Internal Revenue Service (IRS) has extended the 2018 due date for ALEs to furnish 2017 forms to employees. ALEs now have until March 2, 2018 to provide Forms 1095-C to individuals, which is a 30-day extension from the original due date of January 31, 2018. No extension has been provided for submitting for 1094-C to the IRS, which remains February 28, 2018. Click here for IRS notice.
Form 1094-C is used to report to the IRS summary information for each employer and to transmit Forms 1095-C to the IRS. Form 1095-C is used to report information about each employee.
The information reported on Form 1094-C and Form 1095-C is used in determining whether an employer is potentially liable for a penalty under the employer shared responsibility provisions of section 4980H, and the amount of the penalty, if any. Form 1095-C is also used by the IRS and the employee in determining the eligibility of the employee (and the employee's family members) for the premium tax credit.
At the same time, as noted by the December 2017 EANJ HR Alert, the IRS has begun enforcing the ACA for the 2015 tax year. The IRS penalty review process will be ongoing and will include the 2016 tax year and future tax years.