Quick Reference Guide | For Calendar Year 2022 Reporting

Employee Benefits

Quick Reference Guide | For Calendar Year 2022 Reporting

What’s Changing for Calendar Year 2022 Reporting?

IRS Form 1095-C Final Instructions

  • Applicable Large Employers will permanently be provided an automatic 30-day extension of time (from January 31 of each year) to furnish Forms 1095-C to employees, and, if applicable, Forms 1095-B to covered individuals
    • Applies to plan years starting after December 31, 2021, and subsequent calendar years
  • IRS “good faith” relief will no longer apply to 2021 reporting and beyond
  • Due Date: Employers will have until March 2, 2023, to provide the 2022 1095-C/1095-Bs to individuals.

Information Reporting Penalties for Calendar Year 2022

  • Failure to file a correct information return or provide correct payee statement: $290 for each return or statement for which the failure occurs, with the total penalty for a calendar year not to exceed $3,532,500Note: Penalty amounts may be increased under special circumstances

Identifying ALEs

Applicable Large Employer (ALE)

  • Employers that average 50 or more full-time and full-time equivalent employees (FTEs) in the immediately preceding year
    • Calculate the aggregate number of hours of service (not more than 120 hours for any employee) for all non-full-time employees for each month of the calendar year
      • Divide the total hours of service in step (1) by 120 = FTEs for the applicable calendar month
      • Take the # of all regular full-time employees (employees with at least 130 or more hours a month) in each month and add them to the # of FTE employees for each of the corresponding months for all 12 months in the preceding calendar year
      • Add the 12 monthly sums of FT + FTE employee (comprised of FTE + FT employees in each month for all 12 months) and divide the sum by 12
  • If the number of FTE is less than 50, the employer is not an Applicable Large Employer (ALE)

Calculating ALE

  1. Based on the prior calendar year average of FT/FTE employees
  2. All employees of a “controlled group” or “affiliated service group” (ASG) of entities are considered
  3. If the total within the controlled group or ASG of entities is 50 FT/FTE employees or greater, all members must comply with the mandate on their own
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