27 December 2017

IRS Delays Deadline for 2017 for Providing 1095-C to Employees

As the deadline approaches the IRS has issued an unexpected 30-day reprieve in the distribution deadline for Form 1095-C.  Large employers subject to the employer shared responsibility payment (also known as “pay or play”) provisions of the ACA must furnish a 1095-C to all their full-time employees on an annual basis. The normal due date aligns with the W-2 deadline – the first business day on or after January 31 after the year ends.  So large employers have been planning on issuing a 2017 1095-C to each of their full-time employees by January 31, 2018.

On December 22, 2017, the IRS announced it is postponing the deadline for 30 days, until March 2, 2018.  This extension is automatic.  Employers don’t have to request it.

There is a second filing requirement associated with the pay or play penalty.  The second filing requirement has NOT been postponed.  Large employers must transmit all of the 1095-Cs, along with a 1094-C transmittal form to the IRS after distributing to employees.  The deadline depends on whether the large employer is filing with the IRS by mail or electronically.  If filing by mail (which is only available if the employer is filing fewer than 250 1095-Cs) the deadline is February 28, 2018.  If filing electronically, the deadline is April 2, 2018.

If you have any questions about this alert, the ACA, or other health care reform developments, please contact the author or another member of Miller Johnson’s Health Care Reform team.