Simplify ACA Reporting with Our Affordable and Accurate Solution
In the realm of HR responsibilities, accurate reporting on Affordable Care Act (ACA) Forms 1094 and 1095 stands out as particularly important. These forms, which report health coverage information to the IRS and communicate whether employers are meeting their obligations under the ACA, carry significant implications for compliance and penalty avoidance.
Understanding Form 1094 and 1095 Reporting: Form 1094-C acts as a cover sheet for the Form 1095-C documents, which must be filed by Applicable Large Employers (ALEs)—those with 50 or more full-time employees, including full-time equivalent employees. The Form 1095-C provides the IRS with information about health insurance coverage offered to each employee, and it is critical that the information on these forms is both accurate and submitted timely.
Why Accuracy Matters: The accuracy of Forms 1094 and 1095 is important because they determine compliance with the employer mandate of the ACA. The employer mandate requires ALEs to offer "minimum essential coverage" that is "affordable" and provides "minimum value" to their full-time employees. Failure to accurately report on these forms can lead to significant penalties if the IRS determines that an employer did not comply with these health coverage requirements.
For instance, inaccuracies in reporting can lead to incorrect assessments of the Employer Shared Responsibility Payment (ESRP), which can be financially onerous. Moreover, inaccurate forms can trigger IRS notices and subsequent investigations, potentially leading to a costly and time-consuming correction process or steep penalty fines.
Best Practices for HR Professionals: To avoid these pitfalls, HR professionals should:
- Ensure understanding of the latest ACA requirements and reporting guidelines.
- Implement robust systems to track and verify employee coverage and eligibility throughout the year.
- Conduct internal audits before submitting forms to catch and correct errors.
- Provide training for HR staff on the nuances of ACA reporting requirements.
BAS offers easy, reliable, affordable ACA compliance services. By working with BAS for ACA reporting, employers can prioritize accuracy in ACA Form 1094/1095 reporting, comply with legal obligations, and also protect their organizations from potential financial penalties. For more information about BAS’ ACA data collection and reporting services, contact your account manager or solutions@basusa.com.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
