FBS Podcast Ep3: 2023 Affordable Care Act 1095 Reporting

With Fall long-gone, the holiday season through, and another year passed, we arrive at a new spooky season. Here to haunt your happy new year is the IRS, the most demanding of trick-or-treaters, pounding on your door for tax forms, and they won’t accept any sub-par filings.

Fulfilling ACA reporting and 1095 filing obligations is a treacherous task, but with the right information and resources, employers can make it through, penalty-free. In this episode, FBS is joined by Heather Garcia, founder of ETC Companies, who shines a light on the unexplained. Heather is an expert on ACA compliance and is very passionate in sharing her knowledge in hopes that employers can avoid any traps while fulfilling filing requirements.

Here are some highlights from the podcast:

What is the deadline for filing 1095 forms? (8:30) “As of the regulations, or the final instructions, that came out in the middle of December, now there’s a permanent extension to March 2nd for distribution to the employee, and [that] gets filed with the government on March 31st.” She does mention that handling this “the sooner, the better” would be to the advantage of the employer, as “most employees get their W2 and a lot of them will go straight to their tax advisor to file their income tax return, hoping to get their income tax refund check…if we don’t have their 1095 out, well they’re back asking for it.”

Can employers file using paper forms? (9:40) “If a district were to still do this on paper, which they are allowed to do if they have under 250 forms, that deadline is February 28th to file with the IRS, and it’s still March 2nd for the employee.”

Is accuracy important? (15:00) “2021’s tax year was reported last January…That is the last year that any client, any employee can use ‘reasonable good faith’ to explain away their mistakes.” The government will now charge fees for forms that require edits. She adds, “we don’t how heavy they’re going to come at it” and that it is “to-be-determined” how important accuracy truly is.

How can ETC assist FBS clients in filling forms? (25:30) “Because we have the source data, the Hub, we get all 12 months of the file, we can answer these questions for them without a lot of input from the school. What that also comes with is full legal indemnity…All they do is call up ETC and the Law Office of Haff & Raggio take over.” A separate service level is also available, with the reporting function only.

Check out the podcast for more information on potential future changes in requirements, the dangers of over-reporting, sources of employee misinformation, and additional tools (outside of ETC services) employers can use to file quickly and accurately. Check out all our podcasts in one convenient playlist here!

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