Health Care Reform Management: Solving the Complexity of ACA Annual Reporting

2016 marks the first year employers with 50 or more 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.


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, ADP streamlines gathering this data and completing the forms. The key is ADP Health Compliance, a solution that can help you manage critical aspects of ACA, including annual reporting requirements. Learn more about ADP Health Compliance.

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 $250 each for IRS Return and Employee Statement
  • Maximum penalty is $6 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 ADP Health Compliance >