Late ACA filing is better than not filing all, as good-faith attempts to comply with the ACA are looked upon more favorably by the IRS. Here, we’ll outline how BASIC can help with our late filing service, but first, who must file?
Applicable Large Employers (ALEs)
- Employers with at least 50 full time equivalent employees in the previous calendar year
- Have specific reporting obligations under the Affordable Care Act (ACA), and face sharp financial penalties when those requirements aren’t satisfied
- Annual penalties for incorrect or late filing can add up quickly and compound the headaches that come with ACA compliance
2020 ACA Filing: Deadlines and Penalties
For 2020 ACA reporting, ALEs are required to distribute 1095 forms to its current and past employees by March 2nd, 2021 (extended from Jan. 31).
ALEs must then file Forms 1094-C and 1095-C to the IRS by February 28th, 2021 if filing with paper or March 31st, 2021 if filing electronically. There is currently no extension for the deadlines to file with the IRS. Electronic filing is required for companies with 250 or more filings.
Both failure-to-furnish and failure-to-file (or late filing) each have penalties of $280 per return, and penalty amounts double if non-compliance is ruled to be intentional.
For example, an ALE who fails to file or furnish information returns for its 150 employees would be liable for an $84,000 penalty assessment. If the IRS deems the ALE’s non-compliance as intentional, such as deciding not to file, that amount doubles to $168,000! Note: it was recently announced that good-faith relief is going away, making it more important than ever to comply with ACA regulations.
BASIC ACA Elevate – A Simple Solution to a Complex Problem
BASIC ACA Elevate offers peace of mind for employers!
- Access to dedicated compliance experts for each client
- File-ready Form 1095 generation
- Automatic e-Filing to the IRS
- Plus optional ACA corrections transmittal and mailing of Form 1095-Cs directly to employees for ease of distribution
Our stand-alone ACA solution generates the applicable 1094-B, 1095-B, 1094-C, and 1095-C forms, which can be filed electronically by simply uploading a Microsoft Excel workbook through our proprietary ACA portal. BASIC can handle preparation of Forms 1094-C and 1095-C with e-Filing for employers of all sizes and complexity– we’ve furnished over 1,000,000 1095-C forms since 2015! BASIC is now accepting clients for the 2021 reporting year as well.
BASIC ACA 2020 Late Filing Service
While other vendors have closed their doors to employers still seeking a 2020 ACA filing solution, BASIC offers a late filing service for employers who are behind on their 2020 reporting obligations. Due to the nature of ACA late filing, BASIC cannot guarantee the deadlines for form distribution and filing to the IRS will be met, as we do for clients that secured filing services prior to the start of 2021. However, any ACA expert will agree that while late filing is not ideal, it’s better than failing to file altogether.