IRS Releases Requirements for 2016 ACA Reporting

IRS Releases Requirements for 2016 ACA Reporting

One of the requirements the Affordable Care Act has for applicable large employees is to report to the IRS under IRC Section 6056. Every ALE member is required to carry this out. While one does not have to report for 2014, it is required to report for 2015 beginning in January of 2016.



Who Qualifies as an ALE

An ALE is generally defined in IRC Section 4980H as an employer with at least 50 full-time employees on average for the prior calendar year. Every employer that is treated as a single employer under the rules of IRS aggregation are treated as such for figuring out ALE status. Each person that makes up the ALE is known as an ALE member. The definition and the definition used for employer responsibilities and regulations are identical.

The Use of ALE Reported Information

The purpose of the information as reported by members of the ALE is for administering compliance with the shared responsibilities of the employer. The compliance of the individual’s tax credits for the Marketplace is also determined. The ALE member will give the reported individual a statement. The information reported to the IRS is included in the statement.


ACA Final Rule


The Final Rule

A final rule was issued by the IRS in regards to the ALE reporting in March of 2014. The IRS also offers a fact sheet. ALE members are encouraged to read through the rules until they can understand the impact of the reporting requirements. Employers have professionals that they can contact if they have specific questions that need clarity.

The Information to Report

It is the responsibility to every ALE member to report each and every full-time employee. The information included in the form should include the name, address and the EIN for each ALE member. Provide the name and contact information of the contact person of the ALE member. The calendar year must be included in the report.

Other Bits of Information to Include

The ALE member must include a certification of the plans offered to the full-time employees as well as those dependent on them. He must also include the months of the year where the coverage was offered. The employee’s share in the monthly premium for self only for each month should also be provided.


ACA Employee Data

Employee Related Information

The ALE must provide the number of full-time workers for every month of the year. The name and contact information as well as taxpayer identification number should be provided for the time the employee was covered. There are also other forms of information that is specifically requested in the forms.

Employees and the Statements Required

ALE members are to make sure each full-time employee has a statement with a name, address and EIN of the ALE member. The individual information reported to the IRS must also be listed above that information. The key is to know how to report the information to avoid getting penalized with an audit.

The way To Report Tax Information

It is a lot like the other IRS information reporting that employers require. The information has to be reported to two groups of people. The IRS has to receive the report as well as the employees. It is important for the employees to receive this information if they are full-time or the equivalent.


1095-C statements for Employees


Providing Full-Time Employees with Statements

Full-Time Employees will receive 1095-C statements. There may be another form as specified by the IRS. Form 1094-C will be used to transmit the employee information to IRS. There are drafts of these forms available for the purpose of review. Draft instructions are expected to be published later in the month with finalized instructions later in the year.

250 Filings, or More

If an ALE member files more than 250 tax forms in the year no matter what type it is, they should be filed to the IRS electronically. The only exception is if the member has a waiver for hardship. Contracts can be made between a third party and an ALE member in order to handle the reporting. However, the responsibility remains with the ALE member for reporting.

Alternative Methods

Self-funded employers are also required to provide reports in regards to the minimal essential coverage according to IRC Section 6055. One thing an employer can do for alternative methods is offer a qualifying order for each employee that works full time. Employees who receive offers for the whole year only need their names reported.


Credit for this small business article goes to NECHES FCU, Port Neches, TX.
Neches FCU is a Texas Credit Union with a long history of service to it’s wide base of members.
Their core objective is one of “Ultimate Member Satisfaction.”
They are well-known for an enthusiastic work atmosphere, delivering a memorable service experience, and where members are known by name.

For The Entrepreneur – 10 Bad Work Habits to Break

For The Entrepreneur – 10 Bad Work Habits to Break


Bad Work Habits

Most of us will go through our careers working for a company of some sort. Some of us who are a bit more ambitious in scope and ambition choose the entrepreneur route. This is a dream come true right? Being your own boss, making the real decisions and having a firm grasp on your future financial destiny. These can all be a reality for you. But, if any of these very typical bad work habits persist, your business is destined to fall short of your lofty goals. So, let’s get to it.

An Entrepreneur Must Have a plan

This sounds very easy right? After all, everybody has plans. The shocking statistic here (perhaps not so much) is most of us let our plans fall by the wayside. When you have a plan for your day, week, month and so on, you must stick to it like glue! Whatever it is, stick to it or it will fail. If you find it difficult to stay on point, start with small daily goals and get bigger as you progress.

Make sure to recharge


Rejuvenate yourself

Taking on the role of an entrepreneur will consume all of your time if you let it. It will haunt your sleep and wake you up stressed to the point of being exhausted. Every great leader in business takes time off to unwind, meditate, take in a round of golf, whatever gets you centered again so you can keep your eyes on the prize. Remember, it’s your business now. If you’re brunt-out, your decision making will be skewed.

What’s your motivation?

All of us want to be financially stable. That is why we work in the first place. But, what is your motivating force that keeps you working toward your dreams? If money is the only impetus you have for motivation, it can be quite crippling in the beginning. Most businesses won’t see a real profit for years. Make sure that you’re passionate about the business as well. Whatever your business may be, it’s that passion that will carry you through.

Have a routine

Productive Routine

Making sure the daily things are done daily is paramount. If there is no consistency in the work week, nobody knows what to expect. Set the example for your staff and be consistent with your routine. You’ll thank yourself for it.

Clear communication

When communication is unclear, whether it be spoken words or by email, there is a communication breakdown that occurs. Ineffective communications even if they are small, can leave a huge impression on the professionalism of your new business. Stay on topic. Your business associates will thank you with great work.

Email extravaganza

Manage Email

You are the boss now. Checking every time your email notification lights up or reminds you with a sound bite that (you’ve got mail) will sidetrack your day. It also makes you look unorganized and impulsive to your new employees. Make a set schedule for checking and answering emails or calls.

Break time

At first, it may seem like a great idea to get in that extra 30 minutes or 1 hour of work to stay ahead. Ultimately this will lead to a ton of sub-par work getting done. Take your breaks. Your mind and body need time to themselves to stay adjusted and focused.

Be on time, every time


There can never be an excuse why the boss isn’t running the show. You must be punctual. Always. You are setting the example for every facet of your company. Make sure that it’s a good one. It is now your duty to anticipate any potential set-backs and side-step them.

Stick to your decisions

We all have to make choices in the workplace. As the quarterback of the show, you are making the tough calls here. If you make a decision and quickly back out or change your mind often, this is the opposite of an entrepreneurial mindset. You are the backbone of the business and your decision must be final.


The Multi-Tasker

Okay, this one can have an article all to itself. Multitasking seems so smart at a glance. You get so much more done in the same amount of time. Or do you really? This flawed (and very outdated) concept hurts more than it helps. Multi-task work styles always invariably lead to lees quality work. It also serves to distract you from previous tasks. In the end it is not an effective strategy to have.

Venturing into the world of your very own company can be a daunting thought. Keep these 10 things in mind and implement them for a sure-fire success strategy. If you stay focused, you have won already.



Thanks for reading our article.
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