ROCK HILL, SC / ACCESSWIRE / December 21, 2020 / With the new year just around the corner, it is time for employers to face their ACA Reporting for 2021. There have been a few changes to the reporting requirements for tax year 2020. ACAwise offers efficient solutions for e-filing and distributing the ACA Forms. For more information visit, www.acawise.com.
The reporting requirements under IRS Sections 6055 and 6056 have changed for the 2020 tax year.
Under Section 6055, in addition to providing minimum essential coverage, insurers must report this information to the IRS and provide a copy of the form to their recipients as well.
Under Section 6056, the IRS mandates that all applicable large employers, or ALEs must provide minimum essential coverage to their full-time employees. Employers who fail to comply with these requirements will face an ESRP, employer-shared responsibility payment.
Another notable change that must be addressed is the extended recipient copy deadline. The deadline to furnish recipients with copies of Forms 1095 was extended to March 2, 2021. Despite the pandemic, employers should not expect to see any additional changes to the ACA reporting deadlines. The deadline to paper file Forms 1094 and 1095 with the IRS is February 28, 2021 and the deadline to file 1095 Forms electronically is March 31, 2021.
Finally, the most significant changes to ACA reporting are in response to the Individual Coverage Health Reimbursement Arrangements, or ICHRAs. As of January 1, 2020, employers are now able to offer this type of health reimbursement plan to their employees.
With the ICHRA plan, employees are given a set allowance for reimbursements each year for their health insurance expenses. The amount is chosen by the employer and the reimbursements are tax-free for both the employee and their employer. There are no minimum or maximum limits to the allowance that an employer can offer.
To report the ICHRA on the Form 1095-C, employers will need to familiarize themselves with a new series of 1095-C codes, 1L-1S, to be reported on Line 14. The addition of Line 17, is where employers must report their employees' zip code and also their age As of January 1, 2020, as this information is important in calculating the affordability of the ICHRA plan.
When asked about the changes to ACA reporting requirements for the upcoming year, ACAwise Co-founder and CEO, Agie Sundaram stated, " ACA reporting is complicated and ever-changing, it is our goal at ACAwise to simplify the process whether it is through innovative tools or full-service solutions".
SPAN Enterprises, the creator of ACAwise, is an industry leader of solutions for IRS tax filing and the transportation industry. Located in the heart of downtown Rock Hill, South Carolina, SPAN proves that big ideas can grow in a small town. With existing Business Management and E-filing Applications such as TruckLogics and TaxBandits and new additions like PayWow, SPAN Enterprises is at the forefront of innovative applications. Learn more at http://www.spanenterprises.com.
Please direct all inquiries to Stephanie Glanville, Content Writer, at support@taxbandits.com.
SOURCE: SPAN Enterprises
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