Leading HR Consulting Firm facilitates their 1095 filing process with TaxBandits.
"In the midst of recent challenges, TaxBandits has consistently demonstrated a high level of professionalism, serving as a reliable source
for solutions.."
- Senior Director of HR Consulting Firm
T
his case study provides an overview of how TaxBandits created a valuable solution for an HR consulting firm’s ACA reporting process.
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Background on the Client:
US and abroad
employee
Businesses
A leading HR consulting firm that serves hundreds of businesses worlodwide and has decades of experience in the human resources industry. The firm provides services that include human resources, payroll, recruiting, and employee training solutions for businesses of all sizes across the US and abroad.
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Pain Points of this Organization
With tax season around the corner, the firm faced the challenge of efficiently handling Form ACA form 1095-B and Form 1095-C for more than 25,000 employees. The HR consulting firm encountered significant challenges in its state information filing approach for Massachusetts, California, Rhode Island, the District of Columbia, and
New Jersey. The absence of a dedicated e-filing solution resulted in inefficiencies in staff coordination, bulk uploading data, address validation, and distribution of recipient copies based on their clients’ requirement. These challenges impacted the firm's operational efficiency and lead to wasted administrative time and funds that could have been better spent elsewhere.
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What are the requirements of the HR consulting Firm?
The consulting firm actively pursued an e-filing solution to address these pain points, aiming to improve the efficiency of their ACA 1095-B/C tax filings and overall management.
Here are some of their specific requirements:
Bulk Data Uploads:
The HR consulting firm faced the challenge of managing extensive health coverage data for 25,000 employees across various industries. Maintaining organizational coherence for such vast data posed a significant challenge.
Prior Year Filing:
The term "Prior Year Filing" typically refers to the process of filing tax returns for the previous fiscal or calendar year. The HR consulting firm required the employees' necessary tax documents and financial information for filing ACA form 1095 B/C for the preceding year to the IRS. The HR consulting firm wanted a solution that could provide prior-year filing for its employees.
States that Require ACA Reporting:
With so many 1095 B/C to handle, the HR consulting firm founded it very difficult to handle ACA reporting for certain states like Massachusetts, California, Rhode Island, the District of Columbia, and New Jersey efficiently and securely manage them in one place. So, they wanted an e-file solution that provided the ACA state filing requirements, making the process more efficient.
USPS Address Validation:
When the HR consulting firm filed their employees' 1095 B/C tax forms, locating the correct address became crucial. While the IRS/SSA does accept returns with invalid addresses, there are restrictions on the maximum size and characters allowed. Therefore, the firm sought a solution to address the Address Validation problem
Workflow Management:
Considering the significant number of employees associated with 1095B/C tax forms, the HR consulting firm wanted a well-organized workflow management system to organize their staff, allocate filings intelligently, enhance collaborative effort, and boost interaction throughout the filing process. In short, the firm needed an intuitive solution for maintaining their workflow.
Recipient Copy Distribution:
The HR consulting firm opted for distributing copies of the 1095 B form to employees through postal mail or online access. In addition to providing a physical record, they aimed to ensure accurate delivery of postal documents. Consequently, the firm sought a solution that offered an efficient process, adhering to official standards, through either postal delivery or a secure online access portal.
Secure online portal:
This firm required a secure online portal to seamlessly access and share documents with their employees, guaranteeing clear communication throughout the 1095 B/C tax filing process.
Flexible Formatting Options for
Forms 1095:
The firm needed to file a high volume of 1095-C Forms for its employees and found that viewing these forms in landscape mode was inconvenient. Therefore, they sought a solution that provided formatting flexibility, allowing them to review forms in portrait mode.
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Implementing TaxBandits E-Filing Solution
TaxBandits understood the challenges faced by the leading HR consulting firm and developed comprehensive solutions to streamline their Affordable Care Act filings of 1095 B/C with the IRS.
1 Bulk Data Uploads:To facilitate the filing of 1095 B/C forms for the employees of the HR consulting firm, TaxBandits provided Excel/CSV templates. This solution proved highly beneficial for the firm, especially when managing large volumes of employee data. With our templates, they could efficiently import filing data in bulk, saving both time and effort.
2 Prior Year Filing:TaxBandits assisted the HR consulting firm in filing 1095 B/C forms for the previous year. We supported the firm in maintaining year-round organization, ensuring accurate financial records, and kept them informed about changes in tax regulations, facilitating a smooth prior-year filing process.
3 ACA State Filing Requirements:TaxBandits offered the HR consulting firm an excellent solution for filing 1095 B/C forms, particularly for states like Massachusetts, California, Rhode Island, the District of Columbia, and New Jersey. By simplifying the intricate ACA reporting requirements, TaxBandits provides a user-friendly e-filing process with time-saving features for employees.
4 Address Validations:The HR consulting firm required an 'Address Validation' feature to enhance data accuracy. TaxBandits incorporated this feature, ensuring the validity of all addresses entered in the 1095 B/C forms through our USPS address validation process. Any identified errors will prompt immediate notification, allowing for
swift corrections.5 Workflow Administration:The HR firm utilized TaxBandits to streamline workflow administration and effectively manage employee tax filings of 1095 B/C forms. With our assistance, the firm efficiently centralized its operations, granting the team necessary access. TaxBandits facilitated the organization of personnel by industry and state, enabling staff allocation to each category. Tracking account activity and assessing forms for each employee became a straightforward process.
6 Recipient Copy distribution:TaxBandits streamlined recipient copy distribution for the HR consultancy firm by verifying addresses against the USPS database before mailing form copies. Additionally, recipients were given access to a secure online portal to download their 1095 B/C Forms as needed.
7 Secure Online Access:The HR consulting firm employed TaxBandits to establish an efficient and user-friendly employee portal. This portal facilitated the accessibility and approval of 1095 B/C forms for employees. Additionally, employees could conveniently download copies of their IRS forms from TaxBandits' secure website after transmission.
8Flexible Formatting Options for Forms 1095:Understanding the specific requirements of the HR consulting firm, TaxBandits introduced a Portrait View feature. This feature enables the firm to create Form 1095-Cs in portrait view, presenting a comprehensive overview in a single PDF file for review before transmission.
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Conclusion
TaxBandits proved to be the ideal partner for the HR consulting firm's needs, tailoring features for a seamless experience and simplifying the complex tax filing process of ACA 1095 B/C forms. Their contribution significantly enhanced the overall success of the HR consulting firm during tax season.
TaxBandits not only met but exceeded the specific needs of the firm, delivering customized solutions that expedited tax filing procedures, improved accuracy, and facilitated seamless communication. This relationship underscores the revolutionary impact of unexplored e-filing solutions in tax compliance.
Why TaxBandits?
- An End-to-End E-filing Solution
- Workflow Management
- Seamless Integration with Leading Accounting Software
- Personalized online portal for both Client and recipient
- W-9 Manager
- Dedicated Customer Support