ACA Filing Deadlines
Reporting to the IRS
Employee Statements Deadline: March 4, 2024
IRS Electronic Filing Deadline: April 1, 2024
Reporting to States
California: April 1, 2024
District of Columbia: April 30, 2024
Massachusetts: January 31, 2024
New Jersey: April 1, 2024
Rhode Island: April 1, 2024
2023 Tax Year Compliance and Penalties
The IRS has set the following penalties for Applicable Large Employer (ALE) companies with 50 or more full-time or full-time equivalent employees that do not comply with the ACA for the 2022 reporting year:
Failure to Furnish Penalty
(Failure to provide correct statements to employees)
This applies to employers who fail to provide correct 1095-C payee statements to employees. The penalty will be at least $310 per return. If the ACA-mandate health insurance information is not provided to employees by the deadlines established by the IRS, the penalties are assessed per applicable individual not receiving this information.
Failure to File Penalty
(Failure to file correct information returns)
This applies to employers who do not file correct information returns with the IRS. The penalty will be at least $310 per return. The penalty amount doubles if an employer’s failure to file rises to intentionally disregard.
4980H (a) Penalty
The Employer Shared Responsibility Payment for Failure to Offer Minimum Essential Coverage (MEC) is $247.50 a month, or $2,970 annualized, per employee. This penalty applies if (a) in any month in the tax year, Minimum Essential Coverage (MEC) is not offered to at least 95% of a company’s full-time employees (and their dependents), and (b) if at least one full-time employee receives the Premium Tax Credit (PTC) for purchasing coverage through the Marketplace.
4980H(b) Penalty
Employer Shared Responsibility Payment for Failure to Offer Coverage that Meets Affordability and Minimum Value (MV) is $371.67 a month or $4,320 annualized, per employee in 2024. This penalty is assessed if the 4980H(a) does not apply. An employer can only receive either the (a) penalty or the (b) penalty, but not both.
On a monthly basis, this penalty is assessed on every full-time employee that did not receive an offer of coverage or received such an offer, but the offer was either unaffordable or did not provide Minimum Value (MV) or both AND the employee received a PTC for that month.