Now that the April IRS deadline for ACA reporting has come and gone, here three timely tips for employers.
1. NOW’S THE TIME TO SET UP FOR TY24. BENEFITSCAPE recommends all employers process their ACA compliance data month by month — and don’t just wait till year-end. Today is an ideal time to talk to BENEFITSCAPE about TY24.
Monthly processing allows us to run pro-active Flag & Fix diagnostics on your HCM data. Managing hours tracking, eligibility & affordability in this way eradicates errors, cuts risk, saves resources, and removes deadline pressure.
2. TY23 ACA SUBMISSIONS CAN STILL BE CORRECTED. In 2023 the IRS made major investments in both advanced new regtech and an army of data scientists [see Regtech Revolution Transforming IRS Powers]. This transformation of IRS auditing capacity has been accompanied by a significant and declared shift in IRS focus onto corporate compliance.
So now could also be a good time for BENEFITSCAPE to run intelligent ACA diagnostics on your TY23 submission. Our ACA regtech services can identify and help remediate any of the errors, noise, and other reporting anomalies that not only incur IRS penalties but can also trigger closer IRS scrutiny.
Your TY23 submission can still be amended by BENEFITSCAPE if required.
3. MINIMIZE ANY LATE PENALTIES INCURRED. If for whatever reasons your company missed the IRS deadline of April 1 for filing TY23 ACA reporting, contact BENEFITSCAPE today to help. Later filings incur heftier fines. We can help you file fast and accurately — plus pursue penalty remediation on any fines already incurred.
The sliding scale of IRS fines for late ACA filings is as follows:
UP TO 30 DAYS LATE:
IRS PENALTY = $60 PER RETURN;
with a maximum penalty of $630,500 per ALE.
OVER 30 DAYS LATE BUT BEFORE AUG 1, 2024:
IRS PENALTY = $110 PER RETURN;
with a maximum penalty of $1,766,000 per ALE.
AFTER AUG 1, 2024:
IRS PENALTY = $290 PER RETURN;
with a maximum penalty of $3,532,500 per ALE.
IMPORTANT NOTE:
If the IRS determines failure to file is intentional disregard then:
IRS PENALTY = $580 PER RETURN
with no limitation on maximum.
Net, net, if haven’t filed already, today is a very good day to tackle your company’s ACA reporting! And if you have, then today is a very good day to run a regtech audit on your ACA submission if you have any concerns about its accuracy and compliance integrity
If you have questions about deadlines, penalties, or any other aspect of the ACA process, please contact BENEFITSCAPE [the leading ACA specialist for employers on all major HCMs/ACA modules] at +1-508-655-3307 or info@benefitscape.com.
