What does ACA reporting require at our size?
The yearly IRS return from an applicable large employer lists, for each full-time employee, whether coverage was offered and whether it satisfied ACA requirements. Employees receive a corresponding statement of their own.
The annual filings.
The returns report whether coverage was offered to full-time employees and whether it met ACA standards. Employers generally furnish statements to employees and file with the IRS by annual deadlines.
Tracking hours and offers of coverage during the year makes filing easier.
Who Is an Applicable Large Employer.
An employer with 50 or more full-time employees, including full-time equivalents, in the prior year is generally an applicable large employer. Counting follows rules about hours, seasonal workers and controlled groups, so the determination is not always obvious.
ALEs have two main obligations: offer coverage that meets ACA standards to full-time employees and their dependents, and report on the offer to the IRS and employees. Penalties can apply when coverage is not offered or is not affordable.
Whether an employer is an ALE, and how to report, depends on facts. Confirm with your tax adviser or counsel. This is general information, not legal advice.
A few more questions.
Which forms are used?
Generally Forms 1094-C and 1095-C. Confirm current requirements with your tax adviser.
Can you help us prepare them?
We keep the deadlines on your calendar and coordinate with your vendor or advisor.
What happens if we file late?
The IRS can assess penalties for late or incorrect returns. Correct and timely filing matters.
Who gets the employee statements?
Full-time employees receive a statement about the coverage offered.
Can we outsource the filing?
Many employers use their benefits administration system, a payroll provider or a vendor.
Related guides.
Health Insurance Broker for Mid-Size Michigan Employers
What growing Michigan employers should expect.
Will switching brokers change our carrier?
Not at all. Changing brokers only changes who services the account; whether the carrier or plan changes is a decision you make on its own timeline.
How do you handle employee questions?
Day-to-day questions go to your assigned account team first, and the 24/7 chat assistant can field routine ones outside business hours.
Where the Rules Come From.
Every statute or rule referenced here links back to its source. What you are reading is general background, not legal or tax guidance, and requirements evolve, so verify against the latest official text.
ACA Employer Reporting (26 U.S.C. 6056)
Large employers submit a coverage report to the IRS and give employees a copy of their own information.
Affordable Care Act (Pub. L. 111-148)
A broad federal law that shapes employer plan rules, including market protections and the filing duties of larger employers.
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