By Greg Autuori, manager, Benefits Consulting, at Namely
You made it. Somehow, some way, you found a way to make sure your company was compliant with the first year of IRC 6055/6056 reporting regulations and associated distribution of Forms 1094/1095. This was a monumental task, and over the past year, there’s a good chance you’ve spent more than a few sleepless nights wondering how on Earth you would ever make it happen. If that which doesn’t kill us makes us stronger, then the strength of the HR community is definitely greater than where it was heading into the New Year.
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The worst is behind us. Employers are now equipped with better knowledge about what needs to be tracked and how to track it, and they have a buffet of tools and service providers available to help. Just as W2s became commonplace and are now a normal part of doing business, this reporting too will become commonplace. The struggles of Q4 2015 and Q1 2016 will become a small blip on the radar; a story we laugh about and tell our children years from now (OK, maybe not).
That said, ensuring a less painful process in the future requires preparation today. We can’t rely on the Transition Relief provisions—a.k.a. the exemption from penalties for 2015 calendar year reporting for a good-faith effort if you’ve got between 50 to 100 employees—continuing into the future, so if you’re an applicable large employer (ALE) going forward, it’s important to keep these steps in mind.