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IRS Extends Deadline for Employers to Furnish Forms 1095-C and 1095-B | Maryland Benefit Advisors

On December 22, 2017, the IRS released Notice 2018-06 to extend the due date for employers to furnish 2017 Form 1095-C or 1095-B under the Affordable Care Act’s employer reporting requirement. Employers will have an extra 30 days to prepare and distribute the 2017 form to individuals. The due dates for filing forms with the IRS are not extended.


Applicable large employers (ALEs), who generally are entities that employed 50 or more full-time and full-time-equivalent employees in 2016, are required to report information about the health coverage they offered or did not offer to certain employees in 2017. To meet this reporting requirement, the ALE will furnish Form 1095-C to the employee or former employee and file copies, along with transmittal Form 1094-C, with the IRS.

Employers, regardless of size, that sponsored a self-funded (self-insured) health plan providing minimum essential coverage in 2017 are required to report coverage information about enrollees. To meet this reporting requirement, the employer will furnish Form 1095-B to the primary enrollee and file copies, along with transmittal Form 1094-B, with the IRS. Self-funded employers who also are ALEs may use Forms 1095-C and 1094-C in lieu of Forms 1095-B and 1094-B.

Extended Due Dates

Specifically, Notice 2018-06 extends the following due dates:

  • The deadline for furnishing 2017 Form 1095-C, or Form 1095-B, if applicable, to employees and individuals is March 2, 2018 (extended from January 31, 2018).
  • The deadline for filing copies of the 2017 Forms 1095-C, along with transmittal Form 1094-C (or copies of Forms 1095-B with transmittal Form 1094-B), if applicable, remains unchanged:
    • If filing by paper, February 28, 2018.
    • If filing electronically, April 2, 2018.

The extended due date applies automatically so employers do not need to make individual requests for the extension.

More Information

Notice 2018-06 also extends transitional good-faith relief from certain penalties to the 2017 employer reporting requirements.

Lastly, the IRS encourages employers, insurers, and other reporting entities to furnish forms to individuals and file reports with the IRS as soon as they are ready.

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Long-Awaited Repeal and Replacement Plan for ACA Unveiled | Maryland Benefit Advisors

On March 6, 2017, the U.S. House of Representatives Ways and Means Committee released a proposed budget reconciliation bill, entitled the American Health Care Act, to replace portions of the Affordable Care Act (ACA). If enacted, the American Health Care Act would provide some relief from provisions of the ACA for employers and make other significant changes to employee benefits. While the proposal is 53 pages long and covers a range of tax and benefit changes, below is a summary of key provisions impacting employers and employee benefits.

Employer and Individual Mandates

The proposal effectively eliminates the employer and individual mandate by zeroing out penalties for an employer’s failure to offer, and an individual’s failure to obtain, minimum essential coverage retroactive to January 1, 2016.

Health Care Related Taxes

The proposal extends the applicable date for the “Cadillac tax” from 2020 to 2025 and repeals the medical device tax, over the counter medication tax, indoor tanning sales tax, and Medicare hospital insurance surtax beginning in 2018.

Reporting Requirements

Because the proposal is through a budget reconciliation process, employer reporting requirements for reporting offers of coverage on employees’ W-2s cannot be repealed; however, the proposal creates a simplified process for employers to report this information that, according to the House Ways and Means Committee’s section-by-section summary, makes the current reporting redundant and allows the  Secretary of the Treasury to cease enforcing reporting that is not needed for taxable purposes.

Contribution Limits

Additionally, the proposal eliminates the cap on contributions to flexible spending accounts (FSAs) and almost doubles the maximum allowable contributions to health savings accounts (HSAs) by allowing contributions of $6,550 for individuals and $13,100 for families beginning in 2018. This aligns the HSA contribution amount with the sum of the annual deductible and out-of-pocket cost expenses permitted under a high deductible health plan. The proposal also allows both spouses to make catch-up contributions to one HSA beginning in 2018.

Patient Protection Provisions

Finally, the proposal retains some key patient protection provisions of the ACA by continuing to prohibit insurers from excluding individuals with pre-existing conditions from obtaining or paying more for coverage and continuing to allow children to stay on their parent’s plan to age 26.

What Employers Should Know Now

We are still in the first round of the new government’s strategy to repeal and replace the ACA. The Congressional Budget Office will next review and score the plan before it goes back to the House and the Senate for full votes before making it to President Trump’s desk for approval. This will take time.

In the interim, the provisions of the ACA still apply. While applicable large employers may not be assessed penalties for failing to offer minimum essential coverage to employees if the proposal is eventually enacted, please note that employers are still obligated to report offers of coverage and should finalize their ACA reporting for the 2016 tax year if they have not completed their e-filing with the IRS (due March 31, 2017).

By Nicole Quinn-Gato, JD
Originally published by