Data and Research April 30, 2015

Many Smaller Employers Support Lawmaker Retirement Savings Efforts

Small-business owners see retirement savings plans as a tool for attracting and retaining talent.
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Small-business owners surveyed predict the greatest potential for a positive impact from government policies could come from expanded tax breaks for automatically enrolling employees in retirement savings accounts (36%).

“Many small-business owners that we work with at Bank of America have told us that they see retirement savings plans as a tool for attracting and retaining talent,” Robb Hilson, Small Business executive for Bank of America, tells PLANSPONSOR. “They feel it’s important to help their employees manage their finances responsibly and save for the future. In addition, the direct financial benefits of the tax breaks would also impact their business in a positive way.”

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Small-business owners responding to the Bank of America survey once again cited health care costs as a top concern (70%) with the effectiveness of U.S. government leaders coming in as the second-highest concern (69%), among various economic issues.

When asked which government policies would have the greatest negative impact on their businesses, small-business owners cited required health care plans for employees (39%). However, another 23% believe they would have a positive impact.

Other government policies employers say would have the greatest negative impact on their businesses are mandated sick leave for employees (29%) and increased minimum wage (26%).

Compliance April 29, 2015

IRS Publishes Draft Guide to Electronic ACA Reporting

The guidelines should be used to develop software for submissions to the Affordable Care Act Information Returns system.
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The Internal Revenue Service (IRS) issued Draft Publication 5165 outlining the communication procedures, transmission formats and other rules for returns filed electronically through the Patient Protection and Affordable Care Act (ACA) Information Returns (AIR) system.

Final rules recently issued by the IRS provide that a plan administrator (or, in certain situations, an employer maintaining a plan) required by the Internal Revenue Code or regulations to file at least 250 returns during the calendar year that includes the first day of the plan year must use magnetic media to file certain statements, returns, and reports. However, the agency encourages electronic filing even for plan administrators that are required to file less than 250 returns.

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The procedures in Publication 5165 should be used for transmitting the following returns electronically:

• Form 1094-B, Transmittal of Health Coverage Information Returns

• Form 1095-B, Health Coverage

• Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns

• Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

 

The IRS issued drafts of these forms and instructions last August.   

A recent survey found 27% of mid-sized employers (1,000 to 5,000 employees) reported that they are planning to implement an in-house solution for ACA reporting, and the same percentage reported that they are considering an outsourced solution.

The draft publication is here. The IRS will issue a final publication later.

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