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.
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