How Does ACA Reporting Affect My Business?

ACA stands for the Affordable Care Act, also known as Obamacare. President Barack Obama signed the act into law on March 23, 2010.

Whether small or large, fully insured or self-funded, the ACA requires employers, benefit administrators, and insurance companies to comply with the act as it exists or may be changed in the future.

Here’s what you need to know about ACA reporting.

What is Section 6055 Reporting?

Do you provide Minimum Essential Coverage (MEC)? Examples include health insurance issuers and employers with self-insured health plans.

If so, you'll need to use Forms 1094-B and 1095-B.

These forms let you report information about the coverage you provided last year.

What is Section 6056 Reporting?

Are you an Applicable Large Employer (ALE)? These are companies that had 50 or more full-time employees last year. This tally would also include full-time equivalents.

If you're an ALE, you'll need to use Forms 1094-C and 1095-C.

These forms allow you to report what health coverage you offer full-time employees. They also report what health coverage you don't offer.

What are the Upcoming ACA Reporting Deadlines?

ACA reporting under Sections 6055 and 6056 for the 2020 calendar year is due in early 2021.

If you are a reporting entity, you must do the following:

• File returns with the IRS by March 1, 2021, since Feb. 28, 2021, is a Sunday (or March 31, 2021, if filing online)
• Furnish statements to individuals by March 2, 2021

The original deadline for individual statements was January 31, 2021. But the IRS issued Notice 2020-76 on October 2, 2020, to extend the furnishing deadline.

Notice 2020-76 does NOT extend the due date for filing forms with the IRS for 2020. Notice 2020-76 also provides more penalty relief. This relief relates to furnishing forms to individuals under Section 6055.

Despite the delay, the IRS encourages you to furnish statements as soon as possible.

You won't need a request or other documentation to qualify for the extended deadline.

How Can Michigan Planners Help?

Our MI E-Navigator offers assistance for our customers to stay compliant and manage risk. You may also contact any member of our servicing team if you have any questions. We would be more than happy to provide you with additional information and resources.

The MI E-Navigator has the following features:

• 24/7 exclusive compliance, people, and risk management tools that you need in order to avoid costly lawsuits, claims, and fines
• Accurate compliance information regarding ACA, FMLA, COBRA, etc.
• Alerts and notifications that help you stay up to date when content and legislation change
• Learning Management System (training)
• User-friendly solution that will assist you in getting more done in less time
• HR and/or compliance assets you need to do your job more effectively
• HR Hotline to speak with a professional for information specific to your situation, industry, or business

Partner with Michigan Planners

Michigan Planners is a group insurance brokerage company. As such, we’d be more than happy to help you shop for competitive group insurance quotes. We’re proud to serve Washington, Traverse City, Lansing, and surrounding Michigan areas.

To transfer or start a group benefits package, call Michigan Planners at (800) 674-9235. Our group insurance brokers are ready to help your company and employees thrive!