Failing To Comply With ACA Can Hurt
The Affordable Care Act is in full swing. The act mandates insurance coverage for individuals either through their employer or a government insurance program.
But this year penalties for non-compliance with the act are increasing for both businesses and individuals.
The penalties for missing a form or failing to show proper insurance coverage can result in significant fines for businesses over 50 employees, but they can also impact non-profit organizations and even government agencies.
Filing proof of insurance under the ACA can be a bit confusing. That includes the forms that some mid to large sized business must now file with the IRS.
“Form 1095-C and form 1094-C. The 1094–C is like a W-3 it’s just a transmittal from, telling the IRS how many forms you have. The 1095-C is the form that Applicable Large Employers tell the IRS what type of coverage that they offered to their employees.”
Confused yet? Join the club. Kevin Sickels is a CPA with Ketel Thorstenson in Rapid City. He says forms like this are required some for Applicable Large Employers that’s business with over 50 employees. Sickels says failing to comply with the new ACA rules can really hurt.
So, really that's a business closer if you don't file the forms and you should have.
“The penalties for those being late filed is $250 per form with a cap at $3-million, says Sickels. “And if you intentionally don’t file at all the penalty is $500 (per form) with no cap. So, really that’s a business closer if you don’t file the forms and you should have.”
But the IRS can impose penalties for smaller businesses, non-profits and even county and city governments who fail to file the proper forms on their employee coverage. You can find a chart here that can help as a guide. Penalties for individuals who fail prove they have insurance coverage are also increasing this year. Most forms are due with the IRS in the first months of 2016.
You can find out more about the rules for filing under the Affordable Care Act here.