If you own or manage a business, you will need to be aware of filing requirements relating to the Affordable Care Act.

In general, employers with less than 50 employees are not subject to these reporting requirements. Here’s how to find out if you are exempt from filing:

  1. The cut-off is for 50 FTEs (full time equivalent employees)
  2. If your business is close to 50 employees, you should calculate the number of FTEs to be sure
    1. For purposes of the Affordable Care Act, a full time employee is 30 hours and up
    2. You need to find the hours worked by part-time employees
      1. Part-time employees are those who worked on average less than 30 hours per week, but more than 120 days per year
    3. Seasonal employees are excluded from the calculations
    4. Here is a helpful government linkfor determining FTEs
  3. If you have less than 25 FTEs and provide health insurance you may qualify for the Small Business Health Care Tax Credit

Your accountant can help you figure out your exact amount of FTEs.

If a business has more than 50 FTEs, they are required to file forms Form1095-C (Employer-Provided Health Insurance Offer and Coverage) is filed for each full time employee and Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns)

The filing is required for full time employees who participate in the health plan and those who do not

The employer must provide the 1095-C to employees by Feb 1, 2016

The employer must file the forms with the IRS by Feb 29, 2016 (March 31, 2016 if filing electronically)

Form 1094-C filing dates are the same

Grouping of companies with common ownership and self-insured programs are a few of many nuances with this law and it is wise to check with an accounting professional to verify your requirements. The penalties will be severe for not filing.