JGS Insurance Compliance Alert - Affordable Care Act (ACA) and Tax Bill Reminders

23 January 2018 By Barry E. Fields

Impact of Tax Bill

The tax bill signed into law on December 22, 2017, eliminates the tax penalty for individuals who fail to maintain minimum essential coverage (MEC) as of January 1, 2019. Although this change will affect individuals who decline to enroll in health coverage, it does not eliminate employer reporting requirements. Some important considerations:

  *   The individual mandate penalties are still in force in 2018. Individuals who go without health coverage for 3 months or longer in 2018 will still have to pay a penalty (unless they qualify for an exception).
  *   The employer mandate still applies. Applicable large employers (ALEs) will continue to face penalties for failure to offer affordable coverage providing minimum value to their full-time employees.
  *   The section 6055 and 6056 reporting requirements continue to apply. Applicable large employers, employers of any size that provide self-funded and level-funded plans, and insurance carriers are still required to issue the applicable 1095 forms and file those forms with the IRS.

IRS Extends 1095 Mailing Deadline to March 2nd

The IRS has announced that the deadline to mail 1095 statements to recipients has been extended 30 days, from January 31, 2018, to March 2, 2018.

This extension applies to 1095-C and 1095-B statements :

  *   1095-B statements: Required for self-insured employers of any size, including employers that just switched to self-funding in 2017 (including ASO and level-funded products).
  *   1095-C statements: Required only for applicable large employers (generally those with an average of 50 or more full-time plus FTE employees in 2016)

IRS Extends Good Faith Transitional Relief

The IRS has announced that it will continue its policy of waiving reporting-related penalties on entities that completed the reporting process on time and made good-faith efforts to provide accurate information on the information returns. In determining good faith, the IRS will consider whether an employer made reasonable efforts to prepare for reporting the required information, such as providing data to a third-party, as well as the steps the employer is taking for compliance for 2018 reporting.

Barry E. Fields
Vice President, Employee Benefits

Cell: 908-406-7000 | Fax: 732-834-0233
101 Crawfords Corner Road, Suite 1300, Holmdel, NJ 07733


Last modified on Tuesday, 23 January 2018 17:53

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