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
Crystalheadshot

Realtor Referral Program

Crystal Fidler - America's Home Place
Mel profilephoto

Grasshopper Lawn Care and Services Accepting New Monthly Clients

Mel Beasley - Wide Open Tech
Burrus rob headshot 300x300

A Summer with Partners/Friends Across the Pond

Robert Burrus - Cameron School of Business - UNC-Wilmington

Trending News

'Landing That Big Fish': With $19M Land Purchase, Brunswick Officials Aim To Lure Employers

Emma Dill - Sep 19, 2023

A Local Landmark's Restoration Boosted By National Grant

Cece Nunn - Sep 18, 2023

CFCC Expands Apprenticeship Programs, Builds Employer Support Network

Jenny Callison - Sep 18, 2023

Green Named COO Of Boys & Girls Clubs Of Southeastern NC

Staff Reports - Sep 19, 2023

Coburn Assigned To Sales Of New Homes At Wyndwater

Staff Reports - Sep 19, 2023

In The Current Issue

Startup Banks On User Needs

The fundraising from the company’s seed round, which was announced in late August, is just the latest multi-million-dollar capital fundraisi...


At WilmingtonBiz Expo, Speakers To Share Viewpoints On Economy

On Oct. 5, WilmingtonBiz Expo participants in the keynote lunch can hear UNCW’s regional economist Mouhcine Guettabi, and Tom Barkin, presid...


Spotlighting This Year’s MADE Awards

The purpose of the awards is to draw attention to manufacturers and makers in the Cape Fear region....

Book On Business

The 2023 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2023 Power Breakfast: Major Developments