Affordable Care Act (ACA) Reporting Requirements for Small Employers

Michael Davidow / Article / 


The stage is all set for a renewed legal battle against the Affordable Care Act (ACA). On November 10th, a week after the presidential elections, the Supreme court will hear arguments as to whether the ACA should remain the law or be stricken down. This is as per the Supreme court's argument calendar. However, the final ruling is still not expected until the spring of 2021.

The heart of the matter is whether the ACA can stand without the tax mandate for individuals to have health insurance. In 2017, Congress enacted the Tax Cuts and Jobs Act (TCJA) that reduced the tax penalty for not obtaining health insurance to zero. This change became effective starting in 2019 and effectively eliminated the individual health insurance mandate under the ACA. The lawsuit challenging the law was originally brought by a group of 20 states and two individuals in early 2018. The states argued that the individual mandate was essential to the rest of the ACA, and the entire ACA was therefore invalid after the TCJA came into force. This argument relies on the Supreme Court's reasoning in the 2012 case that upheld the ACA, which found at the time that the law was an appropriate use of Congress's power to tax.

ACA Reporting Requirements for Small Employers

The outcome will undoubtedly have major implications for the 20 million consumers covered under the ACA, the insurers as well as the hospitals. The fight over the ACA is coming to a head at a time where the Coronavirus pandemic has brought healthcare to the forefront. It remains to be seen whether the Supreme Court will finally uphold the ACA, consolidating all the gains that our health care system has made under the law.

Should the states win, and the law is struck down, experts believe that companies will not need to file their 2020 1094/1095 filing with the IRS, however, these findings are not true. These filings are due by January 31, 2021. However, as the court will not be giving their final ruling until the spring of 2021 all filings will be due and all fines will be held up should a company not file in a timely manner. Will the Affordable Care Act (ACA)’s the unrelenting legal battle end in termination?