Follow Kara Linkedin Twitter Facebook
Email Kara Email
Legal Issues
Feb 1, 2016

Reporting Deadlines Extended For Large Employers Under The ACA

Sponsored Content provided by Kara Gansmann - Attorney, Cranfill Sumner & Hartzog LLP

In taking a momentary break from the cybersecurity series, this article considers the upcoming reporting deadlines, which have recently been extended by the IRS, for those applicable large employers under the Affordable Care Act (ACA). Large employers – generally those with 50 or more full-time equivalent employees under the ACA – may have spent 2015 calculating which employees are eligible for health care benefits under the “look back” method or through other calculations.
 
Now those calculations will be tested by the looming reporting provisions of the ACA.
 
Applicable large employers, irrespective of what level of health benefits, if any, they provide, must send individual reports to every employee who worked full-time for at least one month during 2015. Employees may use this information to determine whether, for each month of the calendar year, they may claim the premium tax credit on their individual income tax returns.
 
In a notice dated late December 2015, the IRS has now extended the date to send these 2015 individual reports from the old deadline of February 1, 2016, to the new deadline of March 31, 2016.
 
Large employers must also send those individual reports, along with a transmittal report, to the IRS. The IRS will use this information to administer the employer-shared responsibility provisions and the premium tax credit. This deadline also has been extended from the old deadline of February 29, 2016, to the new deadline May 31, 2016, if not filing electronically, and from March 31, 2016, to the new deadline of June 30, 2016, if filing electronically.
 
The newly extended deadlines apply only to the returns and statements for the 2015 calendar year. Employers who fail to report will be subject to a penalty of $100 per violation, up to a maximum of $1.5 million annually. However, those employers that report within 30 days of the deadline will only be fined $30 per violation. Those that file within five months of the deadline will be fined $60 per violation. For the 2016 calendar year, the penalties will increase to $250 per violation, with a maximum of $3 million per year. Applicable large employers should consult their trusted tax advisers to determine how these deadlines affect their businesses.
 
Kara Gansmann, a North Carolina native, is an associate in Cranfill Sumner & Hartzog LLP’s Wilmington office, where she focuses her litigation and appellate practice on various aspects of labor and employment law, business and contractual disputes, medical malpractice, and HOA matters. To contact Kara Gansmann, call (910) 777-6055 or email her at [email protected].
 

Other Posts from Kara Gansmann

Wbj insights revised 0510 121615113531
Ico insights

INSIGHTS

SPONSORS' CONTENT
Headshotrosaliecalarco 1182131047

Beware of Online Holiday Shopping Scams

Jasonpathfinder3

Unlocking the Full Potential of Your Executive Compensation Package

Jason Wheeler - Pathfinder Wealth Consulting
Jenniferadams

Refreshing Water (and Sewer) in Wrightsville Beach

Jennifer Adams - Cape Fear Public Utility Authority

Trending News

Better Business Bureau Recognizes Two Wilmington Companies

Staff Reports - May 13, 2025

Davis Named CFR's Government Affairs Director

Staff Reports - May 13, 2025

Kent Homes Earns Guildmaster Award

Staff Reports - May 13, 2025

Wilmington-based Outdoor And Adventure Education Center Earns Accreditation

Staff Reports - May 13, 2025

Port's Intermodal Rail Yard Project On Track For 2026 Completion

Emma Dill - May 12, 2025

In The Current Issue

CEA Professional Services Winner: Catering To CFO, Bookkeeping Needs

The firm has grown rapidly in just under three years, the founder said, adding that the company takes an entrepreneurial approach to its ser...


Meet The 2025 CEA Winners

Who would you invest $100,000 in? That’s a piece of advice given to the Coastal Entrepreneur Award judges as they make their picks....


CEA Emerging Company Winner: Startup Seeks To Keep Schools Safe

It could be deployed in two seconds if an active shooter threat occurred and would block the door to the classroom to keep a shooter away....

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season