On November 18, 2016 the Internal Revenue Service (IRS) released Notice 2016-70, which extends the due dates for furnishing the 2016 ACA Reporting Forms 1095-B and Form 1095-C to employees. This extension allows for an additional 30 days for both employers and health insurance providers to provide the Forms 1095 to employees and individuals enrolled in coverage; moving the due date from January 31, 2017 to March 2, 2017. This notice, however, does not extend the filling due dates for the 2016 Forms. Therefore, the deadlines to file the Forms 1094 and 1095 with the IRS remain unchanged.
Paylocity has taken into consideration the IRS extension, after evaluating the current status of our ACA customers; it has been decided to print and distribute Forms 1095-C according to our initial schedule, based upon the original IRS due date of January 31, 2017.
The key dates Paylocity employers need to know:
- Form 1095-C print production will begin on January 5th
- Form 1095-C distribution will take place prior to January 24th
Forms 1095 Filing Deadlines:
- The due date for health coverage providers and employers filing the 2016 Forms 1094/1095-B and the Forms 1094/1095-C to the IRS is February 28, 2017, if not filing electronically. This date is not extended.
- The due date for health coverage providers and employers electronically filing the 2016 Forms 1094/1095-B and the Forms 1094/1095-C to the IRS is March 31, 2017. This date is not extended.
Some employees may not receive their other Forms 1095, such as 1095-B from their health insurance provider prior to filing their personal income tax returns. Individuals may rely on other information received from their employer or other coverage providers for the purposes of determining premium tax credit eligibility upon filing their income tax returns and confirming that they had minimum essential coverage.
*Individuals do not need to wait to receive Forms 1095-B and/or 1095-C prior to filing their returns.
The extensions of due dates apply only to section 6055 and section 6056 information statements (Forms 1095-B and 1095-C) for calendar year 2016 furnished in 2017.
Notice 2016-70 also extends transition relief from penalties for 2016 under Section 6721 and 6722 to reporting entities who make a good faith effort to meet the information reporting requirements under Section 6055 and 6056 for incorrect or incomplete data reported on the information returns. There is no transition relief available to those that do not make a good faith effort to comply or fail to file or furnish the information returns by the due dates.
To view IRS Notice 2016-70 in detail.
Thank you for choosing Paylocity as your payroll tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a payroll service provider are encouraged to seek the advice of a qualified CPA, tax attorney, or advisor.