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
Dave sweyer 300 x 300

4 Great Reasons Service Members Should Consider Becoming Investment Property Owners

Dave Sweyer - Sweyer Property Management
Carolinemontgomery4

New Dec 2020 Government Stimulus and Programs

Caroline Montgomery - Adam Shay CPA, PLLC
Aaeaaqaaaaaaaaidaaaajdhiztrkodm0lte2yjetngrkmy1hotrmltawmdvlmwqyztmymw

New To NC? Welcome To Wilmington

Diane Durance - UNCW Center for Innovation and Entrepreneurship

Trending News

Downtown Grocery Store Founders Share Details

Jessica Maurer - Jan 26, 2021

What's Next For Mixed-use Project On South College Road

Cece Nunn - Jan 25, 2021

In Downtown Wilmington, Coworking Space Opens In Overhauled Building

Cece Nunn - Jan 26, 2021

Carolina Crab House Offers A Taste Of Louisiana

Jessica Maurer - Jan 27, 2021

Genesis Block Names 10 Companies Selected For Minority Business Accelerator

Christina Haley O'Neal - Jan 25, 2021

In The Current Issue

Giving It A Shot

Faced with a limited supply of vaccine doses and other challenges, local leaders are starting to roll out plans to convince as many peo­ple...


Boutique Hotel Responds To Pandemic

The first year of business is the most tenuous, no matter what, but add a pandemic to that year, and it becomes even more tricky. Find out h...


Apartment Market Remains Robust

As growth in the region contin­ues, apartments remain on the rise throughout the Wilmington area, with more units on the way....

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

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100