Small-Business ACA Tax Reporting for Arizona Businesses


With the presidential election right around the corner, taxes for businesses and the Affordable Care Act are quite in the news.  It is crucial that your business is ahead of the curve and is aware of what is at stake

The ACA comes with reporting requirements that differ based on a business’ size and whether it “self-insures” health coverage. Navigating those requirements can be tough; a CPA can help.

The Affordable Care Act (“ACA”) carries some potential tax-reporting and preparation pitfalls for the unwary business owner. To help you understand the myriad of obligations and reporting requirements, here our accountants’ answers to some of the most frequently-asked questions about ACA reporting.

Q: What are the filing requirement?

A: The filing requirements differ depending on the size of your business and whether you self-insure health care coverage for employees. Regardless of what size your business is, if you provide self-insured health insurance coverage to employees, you will need to report certain information on an annual return. Employers with 250 or more employees are required to file electronically with the IRS; smaller employees may file on paper.

Q: Are there tax credits available to employers?

A: If your business has fewer than 25 full-time employees and meets certain other requirements, you may be eligible for a Small Business Health Care Tax Credit if you purchased insurance through the SHOP marketplace, which can help offset the cost of providing health insurance.

Q: My business has fewer than 50 full-time employees. That means I don’t need to report health care coverage information, right?

A: The IRS defines a full-time employee as someone who worked an average of 30 hours or more each week for more than 120 days in the last year. So, even though you don’t consider an employee to be a full-time employee, they may be full-time in the eyes of the IRS and your business may have to meet ACA reporting requirements that apply to employers with 50 or more full-time employees.

Q: What are the filing deadlines for the 2016 tax year?

A: By January 31, 2017, employers must send Form 1095 copies to recipients/employees. February 28, 2017 is the deadline for filing paper copies of Form 1095 with the IRS, and March 31, 2017 is the deadline for e-filing Form 1095 with the IRS.  

As you can see, the reporting requirements of the ACA can be complex. To find out about how our Mesa/Chandler CPA firm can help your small business navigate these requirements with ease, and help you with small business tax services, please contact our tax office today.