2022's 1094/1095 Reporting to the IRS - Am I an Applicable Large Employer (ALE)?
1094/1095 Forms Due to Your Employees by March 2nd, 2023 - Does this Affect Me and My Company?
Are you riding that line of having nearly 50 full-time or full-time-equivalent employees? Are you already over that number? Do you have common ownership between multiple companies that would put you at or above that 50-employee mark?
Now’s the time to do your 1094/1095 reporting to the IRS for the 2022 year, so if you’re in the ballpark of 50 employees, listen up.
What is 1094/1095 Reporting?
In a nutshell, any employer that had 50 or more full-time or full-time equivalent employees in the preceding calendar year must distribute individual 1095-C forms to their employees and the IRS, and a single 1094-C form to the IRS showing that affordable coverage was offered for each month that the employees were eligible for health insurance coverage.
When's it Due?
1095-C forms are due to your employees by March 2nd,2023, and the 1095-C and 1094-C forms are to be filed electronically with the IRS by March 31st.
What's the Penalty for Not Filing and/or Not Offering Group Health Insurance if I am Legally an ALE?
If you’re an ALE and do not offer health insurance to your employees, you can face a fine of $214.17 per full-time employee per month (or $2,570 per year) for every month that coverage was not offered. The IRS calculates the penalty with an automatic reduction of 30 employees, so say that you had 60 full-timers for 2022. Multiply 30 times $2,570 and you would owe the IRS $77,100 for 2022 alone. All it takes is a single employee receiving a premium tax credit on the individual marketplace, then you’re on the IRS’s radar.
I Haven't Filed and/or Don't have Group Coverage for My Employees, What Do I Do?
We can't fix the past, but we can look forward and get you prepared for the future years. If you're in this scenario or skating on the 50 Full-Timer line, don't dance with the IRS. Let's set up a suite of benefits tailored to you and your employees so you can have peace of mind.
Helpful Articles:
Determining if an Employer is an Applicable Large Employer - irs.gov
Questions? Contact Me:
Schuyler Moore: smoore@grovedavisins.com
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