Most entrepreneurs generally lose their sleep when the deadline to file tax returns draws close. Adding to their woes are the new reporting guidelines under the Affordable Care Act (ACA). Many of them aren’t certain whether they fall under the category of ‘Applicable Large Employers.’ According to this legislation, term refers to businessmen employing more than 50 full-time workers. These individuals should be working in 8-hour shifts every day throughout the assessment year according to these proprietors’ payroll. They need to provide in-depth information to the authorities regarding healthcare coverage to these workers. For this, they have got to submit all the relevant details in Form 1095-C. They need to submit this document to relevant authorities within the specified time frame. These owners will be liable for penalties if they fail to do so.
What factors should entrepreneurs consider when seeking ACA reporting assistance from experts?
Many legal experts say businessmen should seek professional help when comes to filing their tax returns. Only these specialists have an in-depth knowledge of various provisions of this particular legislation. They can provide the necessary assistance to these proprietors in every possible way. These experts collect all the necessary information. Such details generally relate to the healthcare coverage these entrepreneurs provide to their workers. Then they prepare all the relevant documents according to guidelines which the federal authorities lay down. They go to the extent of submitting the returns on behalf of these proprietors. For their services, these professionals charge a nominal fee.
These professionals acknowledge most entrepreneurs are reluctant to disclose sensitive information to such service providers. These details include their social security number, employees and values of coverage these businessmen provide.
They say there are important 3 factors entrepreneurs need to consider when hiring professionals of ACA reporting assistance. These are as follows:
- Experience
The service provider these businessmen seek to hire should have relevant industry experience. This professional should be well-versed in filling various kinds of tax returns for his/her clients. He/she should able to anticipate the problems which are likely to arise and resolve the issues. The last thing these proprietors want is come under the preview of scrutiny by federal authorities.
- Obtain relevant authorization from the tax authorities
Entrepreneurs need to hire a service provider who has necessary authorization from IRS. Only this professional can file tax returns on behalf of his/her clients with the authorities. He/she should be a qualified and practicing tax lawyer or certified public accountant. If this note the case, they are asking for trouble.
- Data security
Cyber offenses in the form of identity thefts are on the rise. Entrepreneurs have a right to be apprehensive about disclosing sensitive information to third parties. The service provider they choose to file their tax returns should take responsibility while handling such data. They should only show the details to the relevant authorities and no one else.
Entrepreneurs know there need to file their tax returns every year. This is the first rule of business. However, they may not be sure of the information they need to disclose under the Affordable Care Act. This is why they may hire professionals to provide ACA reporting assistance. In doing so, they should first keep the following 3 important factors in mind.