Federal Health Insurance Deadline March 31 for Employers
Long Island employers with 50+ employees must file Form 1095-C by March 31. Missing this deadline triggers $310 penalties per employee - potentially $15,500 for a 50-person business.
If you employ 50 or more people, you have exactly 70 days to file your 2025 Form 1095-C with the IRS. Miss the March 31 deadline, and you'll face $310 penalties for each employee - that's $15,500 in fines for a 50-person business, $31,000 for a 100-person company.
This annual filing proves you offered affordable health insurance that meets federal requirements. It's not optional paperwork - it's how you avoid Affordable Care Act penalties that can reach $3,340 per employee annually.
What Form 1095-C Actually Does
Form 1095-C serves as your proof of compliance with the employer mandate. For each employee, it documents:
- What health coverage you offered each month
- Whether that coverage was considered "affordable" under federal calculations
- Whether the employee actually enrolled in your plan
- Any months when coverage wasn't available
The IRS uses this information to determine if employees qualify for premium tax credits on the health insurance marketplace. If your coverage was affordable and adequate, employees can't claim subsidies - saving taxpayers money and keeping you compliant.
The Real Cost of Missing March 31
Beyond the immediate $310 per employee penalty for late filing, missing this deadline signals larger compliance problems to federal regulators. Proper ACA reporting and documentation protects you from much steeper penalties during IRS audits.
According to recent federal guidance, enforcement actions are increasing as the health insurance marketplace stabilizes. Employers who consistently file late or incorrectly face enhanced scrutiny.
Nassau and Suffolk County businesses particularly struggle with the affordability calculations, which change annually based on federal poverty guidelines. What qualified as "affordable" last year may not meet 2025 thresholds.
Beyond Filing: Getting Your Numbers Right
The March 31 deadline isn't just about paperwork - it's about proving your health insurance offering meets federal standards. Many Long Island employers discover compliance gaps only when preparing these forms:
- Affordability miscalculations: Using outdated poverty guidelines or incorrect employee wages
- Coverage gaps: New hires who weren't offered coverage within the required 90-day window
- Documentation problems: Missing records of coverage offers or employee waivers
Each error can trigger employee-specific penalties reaching thousands of dollars, making accurate 1095-C preparation essential for protecting your bottom line.
Why Professional Preparation Pays Off
Most small business owners handle their own tax returns, but ACA reporting requires specialized knowledge of federal poverty guidelines, affordability safe harbors, and coverage adequacy standards that change annually.
Professional preparation typically costs far less than a single penalty, and experienced benefits administrators catch errors that trigger IRS scrutiny. They also maintain the documentation trail you'll need if questioned about your filings.
Smart Long Island employers treat March 31 as a compliance checkpoint, not just a filing deadline. It's your annual opportunity to verify that your health insurance strategy actually protects you from federal penalties while supporting employee retention.
Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This summary is for informational purposes only. Please contact your Benton Oakfield representative to review how these changes impact your specific plan documents.
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