As an employer, it's crucial to stay informed about changes to the Affordable Care Act (ACA) reporting requirements. With this in mind, we've compiled some important updates for 2023 that you need to be aware of to ensure compliance.
First and foremost, the deadline for submitting Forms 1094-C and 1095-C to the IRS has been extended to March 2, 2023. This deadline applies to both electronic and paper filing. While this is good news, it's important to remember that the extra time shouldn't be wasted. Use it to double-check your reporting and ensure that all information is accurate and complete.
Another notable change is the elimination of offer of coverage code 1G. Previously, this code was used to indicate the offer of COBRA continuation coverage. Moving forward, employers should use a different code for this purpose. This change aligns with the IRS's goal of streamlining and simplifying ACA reporting.
There are also updates to the forms themselves. The 2023 version of Form 1094-C includes a new checkbox for employers to indicate if they are filing for a short tax year. This change applies to employers who changed their tax year during 2022.
In addition, Form 1095-C now includes a new code, 1J, which is used to report the conditional offer of coverage to a spouse. This code is used when the employee is offered coverage that is conditional on the spouse not being eligible for employer-sponsored coverage.
It's worth noting that the ACA reporting requirements can be complex, and noncompliance can result in significant penalties. It's important to stay up-to-date on any changes and to ensure that your reporting is accurate and complete. If you have any questions or concerns about ACA reporting, consider seeking professional advice.
In conclusion, it's crucial for employers to stay informed about changes to ACA reporting requirements. With the deadline extension and updates to codes and forms, it's important to review your reporting procedures and make any necessary updates to ensure compliance. By staying informed and proactive, you can avoid costly penalties and ensure a smooth reporting process.