Skip to main content

Answers to your top five ACA IRS reporting questions

Person reviewing IRS reporting documents with a computer and papers on table.

Are you ready for 2022 Affordable Care Act-required reporting to the IRS? Do you need to verify the accuracy of prior year forms?

With "transitional good faith relief" in the rear-view mirror, the industry is anticipating an increase in penalty letters, which will likely lead to more audits. Employers cannot afford to get their 1094s and 1095s wrong.

Check out the top five pressing questions from clients on ACA IRS reporting and the answers from our benefits experts.

Q1. We didn’t know about ACA reporting before now. What if we did not file in prior years?

The best course of action is to retroactively file for prior years. You should also contact legal counsel.

Q2. What if we discover a mistake made in a prior year filing, such as missing a newly eligible employee?

The best practice is to file retroactively. You'll need to carefully recalculate the employee’s eligibility based on whatever measurement periods your organization selected. You should also contact legal counsel.

Q3. What data do we need to file?

You'll need a combination of plan sponsor information, plan information, census and enrollment data. If your plan is self-insured, you will also need dependent information.

Q4. How do we determine if our organization is at risk for an IRS ACA penalty?

The answer lies in the quality of your organization's data and the integrity of your measurement period reporting, IRS reporting and/or filing. To mitigate risk, spot-check a few different recipients under various scenarios, such as mid-year new hires, mid-year terminations, part-time to full-time, FT to PT, COBRA, etc.  Make sure you've filed for all Employer Identification Numbers.

Q5. What happens if our organization gets a penalty letter, and how do we respond?

The first thing to do is contact the IRS and request an extension. Secondly, review the reason for the penalty and determine if it makes sense. Assuming it makes sense, hire an independent third party to audit your reporting and/or filing in question and make any needed changes to your original return.

Popular posts from this blog

Employee Benefits Offerings: What Perks Can You Add?

Employee benefits can play a crucial role in attracting and retaining top talent. Beyond compensation and bonuses, offering a variety of perks can significantly enhance employee satisfaction and productivity. But what should you include in your employee benefits offerings?   What are employee benefits?   Employee benefits encompass compensation, bonuses and various perks outside an employee's wage. By offering flexible employee benefits, you can improve employee productivity and loyalty while attracting and retaining talented candidates.   Personalized benefits examples   The type of benefits offered can vary by industry. We've compiled some of the most popular options to help you explore possible employee benefits strategies .  1. Social opportunities   Employee perks don't always have to be tied to a benefits package. Sometimes, the best way to engage your employees can be through social opportunities. Group activities can help im...
Read more

What is Risk Management? 4 Key Topics to Know

Understanding risk management in retirement programs  Managing a retirement program is complex, with multiple layers of risk. For organizations and their leadership, understanding and mitigating these risks is crucial to ensuring the long-term success and reliability of these programs.   It often leaves human resource professionals, employers and program administrators questioning, "What is risk management, and how can we excel at it?"  This blog post explores the various aspects of risk management in retirement program administration and provides actionable insights to help organizations better manage these risks.  The importance of risk management  Retirement programs are designed to benefit participants and beneficiaries, but they come with their own set of risks. These risks can be broadly categorized into four main topics:  Fees  Administration  Investments  Cybersecurity  Each of these topics requires meticulous attention and ...
Read more

Executive disability income protection program: C-suite FAQ

Implementing a comprehensive risk management strategy is imperative for C-level executives and senior management at HANYS member hospitals. One critical, but often overlooked component, is the executive disability income protection program. But what exactly is this program and why is it vital for high-income earners?   With increasing interest in executive disability income protection programs from C-suite executives, TruePlan Benefit and Retirement Advisors interviewed Bernard A. Gleeson, Director, Employee Benefit Services, on Executive disability income protection programs FAQs.  What is an executive disability income protection program?  An executive disability income protection program (EDIPP) is a specialized form of disability insurance designed to supplement existing group disability plans offered by employers. These individual plans provide additional coverage beyond the typical monthly maximum benefit cap found in traditional employer-based offerings. By ov...
Read more