Employers affected by two significant provisions of the Affordable Care Act (ACA) should take note of delays announced at the end of last month.
Deadlines Extended for 2015 ACA Information Reporting Requirements
IRS Notice 2016-4 extends the due dates for the 2015 ACA information reporting requirements under sections 6055 and 6056 of the Internal Revenue Code, as follows:
- Forms 1094-B and 1095-B. Self-insuring employers that are not considered applicable large employers, and other parties that provide minimum essential health coverage, must file the first IRS information returns no later than May 31, 2016 (or June 30, 2016 if filing electronically), and furnish individual statements no later than March 31, 2016.
- Forms 1094-C and 1095-C. Applicable large employers—generally those with 50 or more full-time employees, including full-time equivalents or FTEs—must file the first IRS information returns no later than May 31, 2016 (or June 30, 2016 if filing electronically), and furnish employee statements no later than March 31, 2016.
- Note: Employers subject to both reporting provisions (generally self-insured employers with 50 or more full-time employees, including FTEs) will satisfy their reporting obligations using Forms 1094-C and 1095-C. Form 1095-C includes separate sections for reporting under each provision.
These extensions apply for calendar year 2015 only and have no effect on the requirements for other years or on the effective dates or application of the ACA “pay or play” provisions. Employers or other coverage providers that do not comply with these extended due dates may be subject to penalties.
Cadillac Tax Delay
A new law provides a two-year delay of the ACA’s excise tax on high-cost employer-sponsored health coverage (commonly referred to as the “cadillac tax” and governed by Internal Revenue Code section 4980I). Prior to the delay, the 40% tax was set to take effect in 2018 and would generally be imposed on plans that cost more than $10,200 (for self-only coverage) and $27,500 (for family coverage). As a result of the new law, this tax will not be effective until 2020.