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
Chris coudriet

New Hanover County Awards $1.3 Million To 130 Local Small Businesses

Chris Coudriet - New Hanover County Government
Aaeaaqaaaaaaaaidaaaajdhiztrkodm0lte2yjetngrkmy1hotrmltawmdvlmwqyztmymw

The “Law Of Contrast” Propels Entrepreneurship

Diane Durance - UNCW Center for Innovation and Entrepreneurship
Burrus rob headshot 300x300

Covid-19 Pandemic: Implications For Managers And Human Resources

Robert Burrus - Cameron School of Business - UNC-Wilmington

Trending News

PAG Recommends Negotiating NHRMC Sale With Novant

Vicky Janowski - Jul 2, 2020

COVID-19 Prompts TekMountain Shift To Virtual Model For Startups

Johanna Cano - Jul 1, 2020

Local Leaders Show Support For Boosting Businesses Owned By Minorities, Women

Jenny Callison - Jul 1, 2020

In The New Fiscal Year, ILM Budgets For COVID Impacts

Christina Haley O'Neal - Jul 2, 2020

BIZTALK: Questions, Concerns On Potential NHRMC Sale

Vicky Janowski - Jul 2, 2020

In The Current Issue

Info Junkie: Rob Campbell

Rob Campbell, who is a veteran, speaker and coach with Rob Campbell Leadership, shares his stop tech and info picks....


Prompted To Make A Move

For some would-be home­buyers, particularly in large Northeastern cities in the U.S, the coronavirus pandemic helped them make up their mind...


K9000 Embarks On New Territory

With a new Wilmington headquarters and manufacturing facility in place, K9000 Dog Wash USA is further establishing its local roots while exp...

Book On Business

The 2020 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2020 Leadership Accelerator: Virtual Workshops for Real Leaders
2019 Health Care Heroes
August 26, 2019 Power Breakfast: A Healthy Sale?
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`