Helping you stay compliant during your 2020 reporting season.
The 2020 IRS filing season is here; and employers need to shift their focus to federal and state health reform reporting. Here’s a few things to keep an eye on:
- On October 2, the U.S. Treasury released IRS Notice 2020-76, extending the due date for employers and providers to issue health coverage forms to individuals for the 2020 tax year from January 31, 2021 to March 2, 2021.
- The deadlines were not extended for filing Forms 1095 with the IRS, they are still due February 28, 2021 for paper filing or March 31, 2021 for electronic filing.
- In addition, the IRS again extended “good-faith effort” transition relief to employers for plan year 2020 reporting. The good-faith reporting relief applies only to incorrect or incomplete information reported on 1095-C or 1095-B forms, and not to a failure to timely furnish or file the forms.
- Employers who have not offered affordable insurance to their ACA-eligible employees, or do not meet reporting requirements are at risk for Penalty A or B under the law.
- Employers with employees that reside in states that have enacted individual mandate requirements (including California, Massachusetts, New Jersey, Rhode Island, and Washington D.C.) may face increased reporting responsibilities in addition to responsibilities at the federal level.