Late last month we re-posted a report from Paychex indicating what they believed to be the top ten regulatory issues for 2016. At the top of their list was Obamacare.
“On December 28, 2015, the IRS extended the Affordable Care Act (ACA) reporting deadlines for the 2015 tax year to give businesses more time to meet the requirements. The deadline extension impacts certain forms mandated under the ACA, notably Forms 1094-C and 1095-C. The new deadlines are March 31, 2016, to deliver the 2015 Forms 1095-C to affected employees; May 31, 2016, to manually file the 2015 Forms 1094-C and 1095-C with the IRS—for employers who’re eligible for paper filing; and June 30, 2016, to electronically file the 2015 Forms 1094-C and 1095-C with the IRS. Applicable large employers (i.e., employers with 50 or more full-time employees, including full-time equivalents) who fail to file Forms 1094-C and 1095-C and/or provide 1095-C informational returns to employees may be subject to penalties for failure to file correct information returns and/or failure to furnish correct statements, similar to the penalties for not filing Forms W-2.”
Their assumptions are proving to be correct – especially for nonprofits. It appears some smaller organizations are finding that they do meet the ACA’s “50 or more full-time employees, including full-time equivalents” benchmark.
When any organization, nonprofit or not, has 50 full-time (or equivalent) employees they are considered a “large employer” under the ACA. They, therefore, have to provide healthcare.
KATV reports from Arkansas about one tax professional who is finding his nonprofit clients ignorant of the 50 employee threshold and scrambling to meet the requirements of an employer their size.
If your organization still has questions or concerns about the Affordable Cara Act, contact your tax professional.
Also the National Council of Nonprofits has compiled a great list of frequently asked questions. Their list is an excellent starting point for nonprofit professionals who would like more information about the ACA and how it relates to tax-exempt organizations.