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Home Affordable Care Act Mark These 2020 Dates for 2019 ACA Reporting (UPDATE)

Mark These 2020 Dates for 2019 ACA Reporting (UPDATE)

3 minute read
by Robert Sheen

3 minute read:

Every year, the IRS requires employers to submit important ACA information to the agency and their employees.

Here are some important dates to keep in mind for submitting ACA information for the 2019 tax year to the IRS to avoid being assessed penalties:

February 28, 2020: Deadline to file 1094-C / 1095-C schedules for 2019 if paper filing.

March 2, 2020 (Previously January 31): IRS deadline to furnish 1095-C schedules for 2019 to employees.

March 31, 2020: Deadline to file 1094-C / 1095-C schedules for 2019 if electronic filing.

July 31, 2020: Form 720 (PCORI) for plans that do not start after September 30, 2019 due from self-insured plans (includes self-insured employers.)

August 1, 2020: Late filing deadline to file 1094-C / 1095-C schedules for 2019.

Here are more details on the IRS filing deadlines:

February 28, 2020
Deadline to file 1094-C /1095-C schedules for 2019 if paper filing.
This applies to employers with total form counts (less than 250) who can elect to paper file their ACA information filings with the IRS. Organizations should adhere to proper filing process and document layout. The 1094-C must be the first form in the submission and the documents must be printed in landscape format. Double check that the Company Name, address, EIN, and associated EINs, in addition to all of the other applicable fields on the 1094-C cover page, are accurate.

March 2, 2020 (Previously January 31, 2020)
IRS deadline to furnish 1095-C schedules for 2019 to employees.
Make sure that you’re distributing 1095-C schedules to all of your ACA full-time employees. Failure to do so could result in a Failure to Furnish penalty under IRC Section 6722. When printing the forms to furnish to your employees, ensure that the forms are printed in landscape format and all necessary fields on the 1095-C are accurate and complete.

March 31, 2020
Deadline to file 1094-C/1095-C schedules for 2019 if electronic filing.
Many of the problems encountered in filing information electronically are data problems. Make sure your key data points are accurate, such as Legal Name, SSN, Address, Employment Periods, Location, and EIN. If an organization receives a status of “Accepted with Errors,” they should note the types of errors identified in their electronic filing. Failure to correct these issues could result in penalties under IRC 6721/6722.

July 31, 2020
Form 720 (PCORI) for 2019 due from self-insured plans (includes self-insured employers).
PCORI was recently renewed through 2029. Applicable organizations should be mindful of their medical plan start and end dates to ensure they are paying the appropriate PCORI fees accurately and timely.

August 1, 2020
Late filing deadline for submitting annual ACA information to the IRS.
After August 1, late filing penalties for not submitting ACA information to the IRS by the filing deadline may result in fines doubling for each return not yet filed with the IRS. See Failure to File Correct Returns Penalty below.

Of course, ACA compliance goes beyond knowing when to file ACA information with the IRS. It takes an ongoing commitment to ensure the accuracy of the data that forms the foundation of successful ACA compliance.

One thing to do is to start tracking employee data for the 2020 tax year in January. Consolidate, aggregate and validate year-to-date data from HR, Time and Attendance, Payroll and Health Benefits databases each month. This is an important step in ensuring an accurate and complete annual ACA filing with the IRS. Employers should conduct a monthly audit of their employment classifications for accuracy. The ACA Employer Mandate requires employers to accurately identify their full-time employees and offer them health coverage meeting certain substantive standards. If you have not started doing this in January, it’s never too late to start this month.

Adhering to these steps will improve ACA compliance and ensure accurate and timely ACA reporting, avoiding the associated penalties, including those in IRS Letter 226J, which the IRS is currently issuing for the 2017 tax year, and penalties to organizations that failed to file forms 1094-C and 1095-C with the IRS or furnish 1095-C forms to employees under IRC 6721/6722 by required IRS deadlines using Letter 5005A and Letter 972CG.

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Mark These 2020 Dates for 2019 ACA Reporting (UPDATE)
Article Name
Mark These 2020 Dates for 2019 ACA Reporting (UPDATE)
Description
Employers can minimize their IRS penalty risk by ensuring they meet these 2020 deadlines.
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The ACA Times
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