Third Party Administrators vs Employers
Many employers find managing their ACA compliance and preparing data for ACA reporting to be complicated. One frequently asked question among employers is, “Can I hire a third-party administrator to take care of my ACA reporting requirements?”
The answer is yes! Employers frequently seek help from third-party providers like ACA Reporting-Software to compile their ACA requirements as well as to file ACA data to the IRS on their behalf.
While employers may choose to use a third-party administrator the potential liabilities under section 4980H are not transferred. Employers are still held liable for filing required ACA Forms by the deadline.
Additionally completed ACA Forms must be reported under section 6056 by the employer; those who prepare returns for employers under section 6056 are subject to requirements typically applied to tax preparers.
The only exception is for entities managed by Designated Government Entities.
As mentioned before, ALE members of the employers are responsible for reporting health coverage offers under section 6056 and must include on Form 1094-C, Part II their Employer Identification Number (EIN). ALE members must also furnish full-time employees with a copy of Form 1095-C that explains the various details of their offer of coverage and the same to the IRS.
