At the 11th hour, the IRS announced that it is extending the deadlines for the new ACA reporting requirements. Instead of large and/or self-funded employers having to distribute a Form 1095-C to all of their full-time employees and employees enrolled in a self-funded health plan by February 1, 2016, employers now have until March 31, 2016 to distribute these forms to their employees. The deadlines for sending Form 1094-C to the IRS, along with copies of the Forms 1095-C, were extended from February 29, 2016 to May 31, 2016 (for those employers filing paper forms) and from March 31, 2016 to June 30, 2016 (for those employers filing electronically).
While this news should make most employers and reporting vendors start their New Year’s celebrations early, it is important to note that as part of this extension, the IRS announced that it will not permit employers to file for additional extensions. If employers fail to meet these new deadlines, they will be subject to substantial penalties. Therefore, while this does give you a little more time to get into compliance, we don’t recommend taking your foot completely off the gas because March 31st will be here before you know it as well.