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How do I stay compliant with ACA reporting? (50+ employees)
When does the company report ACA compliance information?
Employers with at least 50 employees must:
- Form
1095-C must be provided to the individual by January 31 of the year
following the year to which the return relates.
- The first Form 1095-C
are due to individuals by February 1, 2016
- Form 1094-C must be filed with the IRS by February 28 of the year following the year to which the return relates.
- The first Form 1094-C must be filed with the IRS by February 28, 2016
Do I have 50 Employees?
An employer is considered a “large employer,” defined as having “at least 50 full-time employees during the preceding calendar year.”
- “Full-time employees” are defined as those working 30 or more hours per week.
- The number of full-time employees excludes those full-time seasonal employees who work for less than 120 days during the year.
- The hours worked by part-time employees (i.e., those working less than 30 hours per week) are included in the calculation of a large employer, on a monthly basis. This is done by taking their total number of monthly hours worked divided by 120.
For example:
A firm has 35 full-time employees (30+ hours). In addition, the firm has 20 part-time employees who all work 24 hours per week (96 hours per month). These part-time employees’ hours would be treated as equivalent to 16 full-time employees, based on the following calculation:
20 employees x 96 hours / 120 = 1920 / 120 = 16
Thus, in this example, the firm would be considered a “large employer,” based on a total full-time equivalent count of 51—that is, 35 full-time employees plus 16 full-time equivalents based on part-time hours.
Other Items:
An employer subject to the employer shared responsibility provisions under section 4980H must file one or more Forms 1094-C (including an Authoritative Transmittal, whether or not filing multiple Forms 1094-C), and must file a Form 1095-C (or a substitute form) for each employee who was a full-time employee of the employer for any month of the calendar year.
Start now with FREE 1095C QuickStart:
