ACA – Be Prepared as Mandatory Reporting Looms on the Horizon

With less than 100 business days until the mandatory reporting deadline arrives for ACA 1094 and 1095 forms, it is critical that human resource (HR) departments implement an ACA reporting solution to deal with this new and complex tax obligation. But what exactly is involved? Understand Your Obligations From figuring out your business determination obligations to validating correct recipient information, it is crucial to correctly report information on time in order to avoid errors and penalties. Furthermore, pulling all this data from different systems may require IT configurations that have not been utilized before that will cost additional time, effort and resources that you may not have fully realized. Investigate Appropriate Help It takes time to find an appropriate vendor who can help you with your ACA reporting needs. From identifying viable vendors in the marketplace and evaluating all options to internally budgeting a project and executing a contract, it is imperative that your company conducts due diligence when it comes to choosing the right option that suits your needs. Implement a Solution Once you implement a solution that will allow you to collect and transmit your data to the IRS, you need a way to check the information to ensure it meets what is required on the appropriate forms. You also need to ensure that people in your department are trained on how to use the software and have all the information loaded properly to meet the January 31, 2016 transmission deadline. To help HR professionals with their ACA tax obligation reporting needs, Sovos Compliance has created a HR ACA Project Management checklist that outlines all the steps you need to take in order to meet this quickly approaching form submission deadline. To learn more about how Taxport ACA can help you with these reporting requirements, we encourage you to contact us.  Time is of the essence.