Upcoming ACA Reporting Deadlines

Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with reporting deadlines in early 2023. For the 2022 calendar year, covered employers must:

• Furnish statements to individuals by March 2, 2023; and
• File returns with the IRS by Feb. 28, 2023 (or March 31, 2023, if filing electronically).

Penalties may apply if employers are subject to ACA reporting and fail to file returns and furnish statements by the applicable deadlines.

The annual deadline for furnishing statements to individuals is Jan. 31. However, the IRS finalized a 30-day automatic extension to the annual furnishing deadline. Thus, the deadline for furnishing statements to individuals for the 2022 calendar year is extended from Jan. 31, 2023, to March 2, 2023. In addition, the IRS has provided an alternative to automatically furnishing statements to covered individuals in certain situations.

Covered Employers

The following employers are subject to ACA reporting under Sections 6055 and 6056:

• All employers with self-insured health plans including level-funded plans (Section 6055 reporting)
• Applicable large employers (ALEs) with either fully insured or self-insured health plans including level-funded plans (Section 6056 reporting)

ALEs are employers with 50 or more full-time employees (including full-time equivalent employees) during the preceding calendar year. Note that ALEs with self-funded plans are required to comply with both reporting obligations. However, to simplify the reporting process, the IRS allows ALEs with self-insured plans to use a single combined form to report the information required under both Sections 6055 and 6056

Action Steps

The IRS generally encourages reporting entities to furnish statements as soon as they are able.

Read the full compliance bulletin linked below for more information.