Look, up in the sky – not Superman – it’s ACA, Affordable Care Act, deadlines coming!
At the risk of being redundant in my warnings I will discuss the ACA reporting deadlines again. You might ask me why am I doing this and how big a deal is it?
Why am I doing it?
Well, mainly because I still find employers who are not aware of the forms required, the deadlines approaching, or the cost of acting like an ostrich.
How big a deal is it?
An ACA Administrator contacted me yesterday and said two really big things.
A. They can still accept a “few” more compliance cases.
B. The cost for a small reporting case would be between $4,000 and $6,000.
You needed to notice “A” because many of the better preparation companies are not accepting new cases now because there is just not enough time to collect
and compile a years worth of employee data to complete all the forms. “B” is not that expensive if you have a really good payroll or similar service already
managing this for you.
For several years now I have been telling clients they need to get a really sophisticated payroll company and this would be one reason why. How else do you
report on every employee you had, every benefit they might have been eligible for, what your costs were, and some other stuff. And then – as if that were not
enough – give a report page to every employee and prepare a compilation report, all of which you then submit to the Fed.
“Oh Bill, your just trying to scare us!” I most certainly am! You need to be concerned about this and you need help.
Here is a quote from a personal insurance and tax advisor “You’ll need a 1095 form to fill out your Form 1040, U.S. Individual Income Tax Return for 2014 line
Where do they get that form? From the employer!
Who goes looking for that form if it’s missing? The employer? No the IRS!
What happens if the employer has not been doing the forms? The IRS sends the employer a warm and fuzzy notice letter! (You know how warm and fuzzy they can be.)
If you have an SPD, you have been doing the SMM, you are on top of the new W-2 reporting, AND, you have addressed the 1095/94 question – you have made a good start.
If not – well I’m certain somebody will remind you about it in 2016.