Affordable Care Act Compliance: Solving the Complexity of ACA Annual Reporting

2016 marks the first year employers with over 50 full-time employees and full-time equivalent employees will have to report on health coverage offered to employees under the Employer “Shared Responsibility” provision of the Affordable Care Act (ACA).

That means now is the time to start recording information about health coverage so you stay in compliance.


calendar icon

Are you ready for 2015 Affordable Care Act (ACA) annual reporting requirements?

Get help with Forms 1094-C and 1095-C. Learn more >


Know the Forms: 1094-C and 1095-C

Starting in 2016, the IRS will require applicable large employers to file two new forms annually:

  • Form 1094-C: Transmittal of Employer-Provided Health Insurance which employers use to report offers of coverage and enrollment to the IRS
  • Form 1095-C: Employer-Provided Health Insurance Offer and Coverage which employers provide to the IRS and each full-time employees

It may sound easy, or similar to a Form W-2, but the data you’ll need to complete the forms may be scattered across multiple systems and administrative areas, including:

  • Human Resources
  • Payroll
  • Leaves
  • Benefits

The result can be intensive manual preparation. But don't worry, ADP can help. By consolidating your data in one place, you can be confident that you are collecting all of the information that you need to make the right decisions about offering benefits, benefit enrollment options and in completing the annual reporting requirements.

Track the Dates for ACA Reporting

Reports for 2015 are due in 2016, which means you need to get started now to prepare for these key dates:

  • Returns first due to the IRS by March 31, 2016 (February 28, 2016 if filing by paper)
  • Statements first due to applicable individuals by February 1, 2016 based on 2015 data

Avoid the Penalties for Noncompliance

So what happens if you fall out of compliance with your reporting? The penalties can add up quickly:

  • Minimum penalty is $100 each for IRS Return and Employee Statement
  • Maximum penalty is $1.5 million

That’s one of the reasons more and more organizations are turning to ADP to help them with annual reporting, as well as other aspects of ACA compliance, including:

  • Eligibility
  • Affordability
  • Notice of Coverage
  • Exchange Notice Management
  • Penalty Management and Reconciliation

Learn more about about how ADP can help you with Annual Health Care Reporting, call 855-237-2650.