Pub. 13 2014-2015 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 31 new jersey auto retailer W W W . N J C A R . O R G that theseALEs are allowed touse either theBForms or theCForms for filing such enrollment information. This will allow these ALEs to complete all of their information reporting requirements on the C Forms without having to bother with the B Forms at all. • Total Employee Count: Like the draft instructions, the final in- structions require ALEs to report their total number of employees. However, inaddition to the twocountingmethods previouslyallowed (counting on the first or last day of each calendar month), the final instructions allow counting on the first or last day of the first payroll period, provided that for each month that last day falls within the calendar month in which the payroll period starts. Regardless of whether the employer files the C Forms or the B Forms, all family members who have coverage due to the non-employee’s enrollment must be included on the same form as the non-employee. • Authoritative Transmittal: Both the final instructions and the draft Instructions permit the filing of multiple 1094-CTransmittal Forms (e.g., one onbehalf of eachoperating divisionof the company) so long as one of the Transmittal Forms is designated as the “authoritative transmittal.” However, the final instructions clarify that the “non- authoritative transmittals” need not have asmuch detailed informa- tion about the ALE as the authoritative transmittal. For example, the non-authoritative transmittals will leave out information about eligibility for transition relief and full-time employee counts. • ControlledGroups: Both the final instructions and the draft instruc- tions provide that each ALE within a controlled group (the ALE’s members)must file anauthoritative transmittal. If anemployeeworks for more than one ALE member during a calendar month, the em- ployee is treated as the employee only of theALEmember for which the employee has the greatest number of hours for the month. The final instructions clarify that only the ALEmember that is deemed to be the employer for the month reports information on the 1095-C for that employee for that month. • Other Changes: The final instructions provide additional details on the reporting requirements for employees in limited non-assessment periods and for using an alternativemethod of furnishing statements to employees. Admittedly, this is some pretty intricate detail and much of it seems legalese in nature. Fortunately, you don’t have to memorize this information, but keeping this article handy can help you to navigate some of the nuances of the new information reporting requirements. What Should Employers Do Next? Even though thedeadline for these filing requirements is not until early 2016, employers need to gather the information that must be reported to the IRS now. Kicking this can down the road is only going to create problems that could prove insurmountable. Further, it is important to understand that even though these final forms and instructions are technically only applicable to the 2014 reporting year, which is not a mandatory reporting year, we do not expect major changes for the 2015 reporting year. As you dig into these forms, you’ll realize that a lot of information is being requested. It can be daunting. In light of this, you’ll need to start sooner rather than later, and enlist the assistance of others. We recommend that employers speak with their payroll/HR system ad- ministrators to see if they are able to assist with the technical aspects of gathering this information. The ACA is changing the way we operate. Some employers will em- brace these changes, others will get lost in the new forms they must complete, and still others will grumble about the politics of the law. But, at the end of the day, the smart employers are the ones who dig into these forms and ensure that they’re in full compliance with the ACA. Daniel Kuperstein is Senior Vice President of Compliance at Corporate Synergies. Dan is an attorney with experience in a broad array of employee benefits, labor and employment matters. He can be reached at 856.813.1207.