If you are confused about Obamacare, you are not alone. Just when you think you understand the rules and the new reporting procedures, something changes. We hope this article helps to eliminate some of the confusion for you.
If you are a small business that employs less than 50 full-time employees, including full-time equivalent employees on average during the year, then you may be exempt from this reporting. However, if you are a small self-insured employer, then these reporting requirements also apply to you. So first, ask yourself these 2 questions:
- Do I have more than 50 full-time equivalent employees?
- Am I a self-insured employer?
If you answered NO to both of these questions, then you will have no additional reporting requirements for 2015. If you answered YES to one or both, please read on.
Starting for 2015, not only will the employer have to file W-2s, but they will also need to report a 1095B or a 1095C for each applicable employee. These forms are required if the employer offers an insured or self-insured group health plan or does not offer any group health plan. In addition, small, self-insured employers will also need to file a 1095B to report employees and their family members who have coverage under the self-insured plan.
Employees will need to receive their copy by January 31st, the same date as the W-2 requirement. For Tax Year 2015, we actually have until February 1st since January 31, 2016 falls on a Sunday.
The penalties on failing to provide these forms to the IRS can result in a fine of $250 per return.
Custom Accounting Services has been attempting to get health care information from its payroll clients since the beginning of 2015 to help eliminate the end of the year scramble. If you as an Employer have contributed to your employee’s health care or HSA benefits, please contact us today for reporting this information. Some of you have been keeping us up to date, but some of you we have not heard from.
This is a confusing time for all of us, but the team at Custom Accounting Services is here to help.