As you begin preparing year-end 2015 payroll tax returns, take time to consider whether a new Affordable Care Act reporting requirement will affect you. If you're an applicable large employer, "Form 1095-C, Employer-Provided Health Insurance Offer and Coverage," is required for each of your full-time employees.
What's the definition of an applicable large employer (ALE)? You're considered an ALE when you have 50 or more full-time employees in the prior year. A full-time employee is anyone working on average 30 hours or more per week, or 130 hours per month. You'll also need to count "full-time equivalent" employees. These are employees whose actual working hours are less than 30 per week, but whose total combined hours meet the equivalent of full-time.
The 2015 Form 1095-C is due to your employees by March 31, 2016, and to the IRS by May 31. (The IRS deadline is June 30 if you file electronically, which you must do when you issue 250 or more forms.) The penalty for not filing Form 1095-C if you're required to is $250 per form, up to $3 million per year.
Another health insurance payroll reporting requirement to remember: You still need to report the value of health insurance coverage on an employee's W-2 if you have 250 or more employees.
Give us a call if you have questions about these or any other payroll reports. We're here to help.
Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at firstname.lastname@example.org.
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
To better serve our clients and friends, to keep you up-to-date and informed, our blog is a resource for tax tips and overall accounting related articles. We hope you find this useful!