The IRS has proposed regulations requiring a digital only electronic filing requirement for ACA Compliance, in effect replacing paper filing options for most Applicable Large Employers (ALE’s).
Previously ALE’s with fewer that 250 forms could file with paper. The new regulations (if adopted) require employers to aggregate all forms they file to the IRS, (W2, 1099 etc. with Form 1095) and if this total exceeds 100, then electronic filing, NO PAPER, is the requirement.
What can you do if you have only a paper filing capability?
- You can request a waiver, its complicated and you may not qualify. https://www.irs.gov/businesses/corporations/guidance-on-waivers-for-corporations-unable-to-meet-e-file-requirements, or
- You can outsource your electronic filing to BenefitScape
o Send your Paper filing to BenefitScape and we will convert it to the IRS eFILING format and file for you, fast and at a fair price.
o If you wish, BenefitScape can handle the printing and mailing of your forms to assist you in providing timely accurate information to your employees.
What are the other Advantages of BenefitScape doing your ACA reporting electronically?
- Save time
- You are now digital enabled, no paper to store, lose or resubmit if required
- BenefitScape can review the data for possible penalties
- Any IRS Corrections required can be done online, saving you time
- You can also have BenefitScape file to the states requiring this eFILING (CA, NJ, RI, DC)
The BenefitScape approach uses very sophisticated software called VeriTracACA©, that audits all your data performing hundreds of checks to be sure it is compatible with the IRS requirements. In essence this pre-processing makes sure that what you are sending to your employees and filing what the IRS is consistent with the actual data that represents your health plan offers and participation. By the way, this is the context the IRS wishes to observe from your filing.
Why is this pre-filing analysis important? Once the IRS receives your data and begins the penalty assessment process you are now in the process of having to defend yourself when in fact a good offense is always the best defense when it comes to the IRS.
What’s the bottom line? The IRS is moving to a digital only process. BenefitScape can bring you to a digital compliance position with the IRS today, all at a modest cost, with no additional work at your end.
NOTE: The effective date of the proposed regulations will be the date they are published as final in the Federal Register. However, the proposed regulations would not apply to information returns required to be filed before January 1, 2019. They would apply to information returns that must be filed after December 31, 2018. The delayed applicability date is intended to give reporting entities time to comply with the proposed regulations.