The following article was first posted on the Carmody Torrance Sandak & Hennessey LLP's Labor and Employment blog and is reposted here with permission.
The IRS has now proposed regulations for delivering Affordable Care Act 1095-C reporting forms to employees at the start of 2022 and future years. Here are a few insights from the proposed regulations.
- Thirty-Day Extension for Furnishing Forms 1095-C. For calendar years beginning after Dec. 31, 2020, the proposed regulations grant an automatic 30-day extension to the annual Jan. 31 deadline to furnish Form 1095-C statements. Under these regulations, the 1095-C due date for furnishing the forms is Wednesday, March 2, 2022 and will be due each year on March 2 (March 1 in a leap year or the next business day if March 1 or 2 falls on a weekend/holiday).
- No More Good Faith Relief. However, the preamble to the proposed regulations states that 2020 was the last year that good faith transitional relief would be provided. Relief from the penalties for filing and furnishing the statements are not available for reporting for tax year 2021 and subsequent years. The preamble does note that the reasonable cause exception in the code provides adequate relief from penalties.
- Alternative Method of Reporting for Self-Insured Plans for Part-Time Employees. There is also an option for employers who have a self-insured plan, to not provide a statement to former employees and non-full-time employees who are enrolled in the plan. The conditions for allowing this alternative method of reporting require a clear and conspicuous notice on its website stating that individuals may receive a copy of their statement upon request. Note this alternative manner of reporting does not apply to full -time employees who must continue to receive a 1095-C.
- Electronic Filing Requirements Remain the Same. The filing requirements for the 1095-C statements remain Feb. 28 if filing on paper and March 31 if filing electronically. Employers that file 250 or more returns must file electronically.
As required by the ACA, employers with over 50 full time employees or full-time equivalents and their service providers should make sure that they are prepared to provide healthcare reporting forms to employees and file these forms with the IRS in the first quarter of 2022.
About the authors: Mark Williams is an attorney who specializes in all aspects of employee benefits with Carmody Torrance Sandak & Hennessey LLP. Timothy Klimpl is an attorney with experience providing ERISA advice. Romania Jawahir is a non-lawyer member of the firm’s labor and employment practice, pursuing an MBA with a concentration in human resources management.
This information is for educational purposes only to provide general information and a general understanding of the law. It does not constitute legal advice and does not establish any attorney-client relationship.