GRAND RAPIDS, Mich., Jan. 5, 2017 /PRNewswire/ -- While most businesses successfully navigated the new tax reporting regulations for the Affordable Care Act (ACA) last year, Greatland Corporation is reminding companies of the updated requirements and the importance of understanding W-2 and 1099 tax forms in order to comply with 2016 reporting. Depending on the size of your business, reporting requirements and forms may vary, and keeping track of the changing rules can be daunting.
ACA reporting via 1094 and 1095 forms was required last year, and employers and insurers are again expected to comply with all ACA reporting requirements, making it imperative that businesses understand the new requirements for 2016. In 2015, the IRS initiated ACA reporting with a "good-faith effort" guideline for businesses to encourage participation, and did not aggressively penalize missteps. The "good-faith effort" leniency has been extended for the 2016 reporting season. However, businesses should still do all they can to accurately complete their forms and file all documents on time in order to avoid penalties and fines.
Additionally, the IRS has issued a 30-day extension for employers and issuers to provide individuals with forms reporting on offers of health coverage and coverage provided. The due dates for 1095-B and 1095-C deadlines are as follows: February 28, 2017 for paper 1095 forms filed to the IRS, March 2, 2017 for 1095 copies to be sent to recipients and employees and March 31, 2017 to e-file 1095 forms to the IRS.
To help businesses prepare for tax reporting season, especially as it related to ACA, Greatland Corporation, one of the country's leading providers of W-2 and 1099 products for businesses, has compiled the ins and outs for those who ask the question "do I need to file?"
Find out if your business needs to file for 2016 to remain compliant by reviewing the guidelines below:
- If your business employs 50 or more full-time equivalent employees and is self-insured, you need to file Form 1095-C Parts I, II and III.
- If your business employs 50 or more full-time equivalent employees and you are NOT self-insured, you need to file Form 1095-C Parts I and II only.
- If you are a self-insured employer with less than 50 full-time equivalent employees, you are required to file Form 1095-B, Parts I, III and IV.
With the pressure of new requirements for ACA reporting, it is important that businesses are also aware of who receives W-2 and 1099 forms. Independent contractors receive 1099 forms and traditional employees will receive a W-2 every year. A W-2 is the form employers use to report annual pay and withholding information. There are a variety of 1099 forms that account for other sources of income.
Beginning in 2017, for the 2016 reporting year, filers must send W-2 and 1099-MISC recipient copies and submit to the SSA/IRS by January 31, regardless of method (paper or e-file). In many cases, this is months earlier, increasing workload and stress for filers. To further complicate matters, the new filing deadline, as it relates to Form 1099-MISC, only impacts filers reporting nonemployee compensation payments in box 7.
Although the overwhelming majority of 1099-MISC filers will report information in box 7, there is bound to be some confusion. Greatland, with more than 40 years of IRS and SSA compliance experience, is trying to help businesses quell the confusion.
For more information on W-2 and 1099 reporting, visit Greatland's W-2 and 1099 fact center website.
Greatland (www.greatland.com) is the W-2 and 1099 specialist, focused on providing information, products, and solutions for small to mid-size businesses and accountants. Greatland helps customers navigate annual reporting changes, including extensive expertise about ACA reporting. Through Greatland's subsidiaries – Greatland, Nelco, and Broker Forms – the company offers an extensive array of specialized products for businesses: W-2 forms, 1099 forms, 1095 forms, W-2 and 1099 software, online filing, business checks, presentation materials, income tax preparation supplies, and mortgage forms. Greatland also offers Yearli, a comprehensive W-2 and 1099 reporting software and online filing platform. Greatland is an employee-owned company with locations in Grand Rapids, Mich. and Green Bay, Wis. Greatland has an extensive W-2 & 1099 fact center located on its website with answers to many of the top filing questions. Follow us on Facebook or Twitter: @GreatlandCorp
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