Two provisions of the Affordable Care Act apply only to applicable large employers (ALEs): the employer shared responsibility provision and the employer information reporting provision for offers of minimum essential coverage. In addition, self-insured ALEs – that is, employers who sponsor self-insured group health plans – have additional provider information reporting requirements.
Employers must determine their ALE status each calendar year based on the average size of your workforce during the prior year. Employers that had at least 50 full-time employees, including full-time equivalent employees, on average last year, are most likely an ALE for the current year.
The IRS announced Nov. 29, 2018, that it extended the 2019 due date for certain entities to provide 2018 health coverage information forms to individuals.
Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 4, 2019, to provide Forms 1095-B or 1095-C to individuals, which is a 30-day extension from the original due date of Jan. 31.
Insurers, self-insuring employers, other coverage providers, and applicable large employers must furnish statements to employees or covered individuals regarding the health care coverage offered to them. Individuals may use this information to determine whether, for each month of the calendar year, they may claim the premium tax credit on their individual income tax returns.
This 30-day extension is automatic. Employers and providers don’t have to request it. The due dates for filing 2019 information returns with the IRS are not extended. For 2018, the due dates to file information returns with the IRS are:
Because of these extensions, individuals may not receive their Forms 1095-B or 1095-C by the time they are ready to file their 2018 individual income tax return. While information on these forms may assist in preparing a return, the forms are not required to file. Taxpayers can prepare and file their returns using other information about their health coverage. They do not have to wait for Forms 1095-B or 1095-C to file.
More information is in Notice 2018-94 PDF .
If an employer has at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is an ALE for the current calendar year. However, an employee will not be counted toward the 50-employee threshold for a month in which the employee has medical care through the military, including Tricare or Veterans’ coverage. For more details see this page.
Bookmark the ACA Legal Guidance and Resources page, where you can find the latest
The Tax Provisions for Employers page provides guidance on the following topics that may affect applicable large employers, as well as other topics for all employers:
The Employer Shared Responsibility Provision Estimator helps employers understand how the provision works and learn how the provision may apply to them.
ALEs that file 250 or more information returns with the IRS must file the returns electronically. For information on the communication procedures, transmission formats, business rules and validation procedures for returns transmitted electronically through the ACA Information Returns (AIR) program, see AIR User Guides & Publications.