The following is an excerpt from “Employer Reporting: The Perfect Storm,” an eBook from The Plexus Groupe exploring the Affordable Care Act IRS compliance challenges faced by employers. To download the updated eBook for Tax Year 2016, click here to be redirected to the Plexus Groupe’s home page, where you can fill out our quick, simple eForm to be sent a PDF of the book.
LET'S LOOK internally at companies. Payroll departments or your internal operations department might feel qualified. These departments and individuals may say they can do it, but do they have the software to do it, or are they trying to do it manually off a spreadsheet? If they say they can provide the reporting, you’ll have to go “all-in” and buy up to a specific level of expertise and technology platforms, which can be expensive.
So ask yourself: Is this the right move -- and are they really going to know the process and procedures?
One other major factor that most companies forget to consider: this reporting can be challenging even for compliance reporting experts. ACA reporting is a moving target. Do companies really have the time, money, and resources to have someone internally keep pace with ACA updates while embracing the learning curve of understanding a new system?
Outsourcing this work gives companies the best chance for success. However, simply outsourcing may not be good enough.
Be careful with whom you partner. There are payroll companies that claim to be the answer, but the bottom line is they’re coming late to the game and are too big and clumsy to respond to rapid regulatory changes. The results are the real threat of huge liability issues stemming from insufficient knowledge of your company and the reporting disputes that follow.
There’s also the matter of your filing partner doing its share of the work. When you pay for 1094-1095 expertise, you should be getting a full suite of preparation services.
Otherwise, what are you paying for?
The Plexus Groupe provides filing, consulting and preparation services for IRS Forms 1094 and 1095. Contact us at 847.307.6100 (Chicago/suburbs), 312-606-4800 (Chicago/Loop) 972-770-5010 (Dallas) or 405-241-9462 (Oklahoma City) to speak to a Plexus client service team representative, or contact us via the Web.