Let us help you prepare for the upcoming season with this refresher course covering recent developments impacting informational returns. This … Read more
The Affordable Care Act (ACA) added various reporting requirements for health plans and employers, including employer information reporting requirements under Section 6055 and 6056. Information gathering will be critical to successful reporting but collecting more sensitive information about employees may raise additional data privacy and security risks.
Under the ACA, providers of “minimum essential coverage” (MEC) must report certain information about that coverage to the Internal Revenue Service (IRS), and to persons receiving that MEC. Providers of minimum essential coverage will use Forms 1094-B, 1095-B, 1094-C and 1095-C to report this information.
Depending on the type of provider, they will need to report on detailed employee data, including names, Social Security Numbers of each employee and covered dependents and months during which health coverage was offered and provided in 2015.
Information gathering will be critical to successful reporting but collecting more sensitive information about employees may raise additional data privacy and security risks.
Collecting this information will be an increased burden, creating more risks on employers given the increased amount of sensitive data that they will be handling, and possibly from vendors working on their behalf. Some steps employers can take to mitigate these risks include:
Employers navigating through the ACA reporting requirements have many issues to consider and how personal information or protected health information is safeguarded in the course of those efforts is one more important consideration. Employers need to prepare now for this upcoming obligation by putting procedures in place. Especially since penalty amounts were recently increased for employers subject to the ACA’s information reporting requirements.
Employers that fail to comply with the requirements may be fined for failing to file correct information returns and for failing to provide correct information returns to employees. The penalty for failing to file an information return increased from $100 to $250 for each return, with a cap of $3 million. The penalty for failing to provide correct employee information to employees also increased from $100 to $250 for each return.
ComplyRight Distribution Services (CDS) offers a secure print-and-mail solution for businesses looking to outsource this function. The CDS facility is HIPAA Certified and has achieved SOC certification from the American Institute of CPAs. So employers can rest assured that all information will remain protected throughout the process, and they will not be exposed to a potential data breach.
Let us help you prepare for the upcoming season with this refresher course covering recent developments impacting informational returns. This … Read more
Tax season is coming up fast, and soon you’ll be filing mandatory employee and contractor forms. Now is the time … Read more
On July 1, 2019, President Trump signed the Taxpayer First Act. This act proposes wide-sweeping changes in an effort to … Read more
If you’re confused about the status of the Affordable Care Act (ACA), you’re not alone. While the ACA continues to … Read more
As the year closes and the tax-filing season looms, employers may question the status of Affordable Care Act (ACA) reporting. Is … Read more
Upon signing the tax overhaul bill in late December, President Trump declared that the ACA was “essentially” repealed, thanks to … Read more
Businesses preparing for this year’s Affordable Care Act (ACA) reporting requirements just received an end-of-the-year gift from the IRS. On … Read more
Given the ongoing debate about the future of the Affordable Care Act (ACA), many employers are asking themselves, “Is the … Read more
At ComplyRight, our mission is to free employers from the burden of tracking and complying with the complex web of federal, state and local employment laws, so they can stay focused on managing and growing their businesses.
©2021 ComplyRight, Inc.