IRS Provides Transition Relief for 2020 Affordable Care Act (ACA) Reporting
December 11, 2020


Highlights


•   The deadline for furnishing individual statements under Sections 6055 and 6056 for 2020 has been extended for 30 days.
•   Good-faith transition relief from penalties has also been extended for a final time for 2020 reporting.
•   The due date for filing returns with the IRS for 2020 is not affected.


Important Dates


March 2, 2021-Deadline for furnishing 2020 Forms 1095-B and 1095-C to individuals
March 1, 2021-Deadline for 2020 filing with the IRS in paper form
March 31, 2021-Deadline for 2020 filing with the IRS electronically



On Oct. 2, 2020, the Internal Revenue Service (IRS) issued Notice 2020-76 to:

•   Extend the due date for furnishing forms under Sections 6055 and 6056 for 2020 from Feb. 1, 2021, to March 2, 2021; and
•   Provide a final extension of good-faith transition relief from penalties related to 2020 information reporting under Sections 6055 and 6056; and
•   Provide additional penalty relief related to furnishing 2020 forms to individuals under Section 6055. Under this relief, employers will only have to provide Form 1095-B to covered individuals upon request.


The due date for filing forms with the IRS for 2020 remains March 1, 2021 (since Feb. 28, 2021, is a Sunday), or March 31, 2021, if filing electronically.


Action Steps

The IRS is encouraging reporting entities to furnish 2020 statements as soon as they are able. No request or other documentation is required to take advantage of the extended deadline.


According to Notice 2020-76, this is the last year that the IRS intends to provide good-faith relief from penalties, since it was intended to be transitional relief only.


Sections 6055 and 6056 Reporting

Sections 6055 and 6056 were added to the Internal Revenue Code (Code) by the Affordable Care Act (ACA).


•   Section 6055 applies to providers of minimum essential coverage (MEC), such as health insurance issuers and employers with self-insured health plans. These entities will generally use Forms 1094-B and 1095-B to report information about the coverage they provided during the previous year.
•   Section 6056 applies to applicable large employers (ALEs)—generally, those employers with 50 or more full-time employees, including full-time equivalents, in the previous year. ALEs will use Forms 1094-C and 1095-C to report information relating to the health coverage that they offer (or do not offer) to their full-time employees.


Extended Furnishing Deadline


The IRS has again determined that some employers, insurers and other providers of MEC need additional time to gather and analyze the information, and prepare 2020 Forms 1095-B and 1095-C to be furnished to individuals.


For 2020, the furnishing deadline was Feb. 1, 2021, Since Jan. 31, 2021, is a Sunday. Notice 2020-76 provides an additional 30 days for furnishing the 2020 Form 1095-B and Form 1095-C, extending the due date from Feb. 1, 2021, to March 2, 2021.


Despite the delay, employers and other coverage providers are encouraged to furnish 2020 statements to individuals as soon as they are able.


Filers are not required to submit any request or other documentation to the IRS to take advantage of the extended furnishing due date provided by Notice 2020-76. Because this extended furnishing deadline applies automatically to all reporting entities, the IRS will not grant additional extensions of time of up to 30 days to furnish Forms 1095-B and 1095-C. As a result, the IRS will not formally respond to any requests that have already been submitted for 30-day extensions of time to furnish statements for 2020.


Impact on Filing Deadline

The IRS has determined that there is no need for additional time for employers, insurers and other providers of MEC to file 2020 forms with the IRS. Therefore, Notice 2020-76 does not extend the due date for filing Forms 1094-B, 1095-B, 1094-C or 1095-C with the IRS for 2020. This due date remains:


•   March 1, 2021, if filing on paper (since Feb. 28, 2021, is a Sunday); or
•   March 31, 2021, if filing electronically.


Because the due dates are unchanged, potential automatic extensions of time for filing information returns are still available under the normal rules by submitting a Form 8809. The notice also does not affect the rules regarding additional extensions of time to file under certain hardship conditions.


Final Extension of Good-faith Transition Relief from Penalties for 2020

Notice 2020-76 also provides a final extension of transition relief from penalties for providing incorrect or incomplete information to reporting entities that can show that they have made good-faith efforts to comply with the Sections 6055 and 6056 reporting requirements for 2020 (both for furnishing to individuals and for filing with the IRS). According to Notice 2020-76, this good-faith relief was intended to be transitional relief. Therefore, this is the last year that the IRS intends to provide this relief.


This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. No relief is provided for reporting entities that:


•   Do not make a good-faith effort to comply with the regulations; or
•   Fail to file an information return or furnish a statement by the due dates (as extended) (except as otherwise provided in Notice 2020-76).


In determining good faith, the IRS will take into account whether a reporting entity made reasonable efforts to prepare for reporting the required information to the IRS and furnishing it to individuals (such as gathering and transmitting the necessary data to an agent to prepare the data for submission to the IRS or testing its ability to transmit information to the IRS). The IRS will also take into account the extent to which the reporting entity made reasonable efforts to prepare for this reporting requirement, such as gathering and transmitting the necessary data to an agent to prepare the data for filing or testing its ability to transmit information to the IRS.


In Notice 2019-63 extending the relief for 2019, the IRS requested comments as to whether an extension of good-faith reporting relief under Section 6056 would be necessary for future years and, if so, why. Very few comments were submitted, which indicated to the IRS that this relief may no longer be necessary. In Notice 2019-63, the IRS also requested comments as to whether and how the reporting requirements under Section 6055 should change, if at all, for future years; only one comment was submitted. The IRS is renewing the request for comments related to furnishing requirements under Sections 6055 and 6056. Unless comments are submitted that explain why this relief continues to be necessary, no relief related to the furnishing requirements under Sections 6055 and 6056 will be granted in future years. Comments must be submitted by Feb. 1, 2021.


Penalty Relief Regarding the Furnishing Requirement under Section 6055 for 2020

The individual mandate penalty has been reduced to zero, beginning in 2019. As a result, an individual does not need the information on Form 1095-B in order to calculate his or her federal tax liability or file a federal income tax return. However, reporting entities required to furnish Form 1095-B to individuals must continue to expend resources to do so.


Therefore, Notice 2020-76 provides relief from the penalty for failing to furnish a statement to individuals as required under Section 6055 for 2020 in certain cases. Specifically, the IRS will not assess a penalty under Section 6722 against reporting entities for failing to furnish a Form 1095-B to responsible individuals in cases where the following two conditions are met:


•   The reporting entity prominently posts a notice on its website stating that responsible individuals may receive a copy of their 2020 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions; and
•   The reporting entity furnishes a 2020 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received. The reporting entity may furnish these statements electronically if it meets the requirements for electronic furnishing.


ALEs that offer self-insured health plans are generally required to use Form 1095-C, Part III, to meet the Section 6055 reporting requirements, instead of Form 1095-B. This 2020 Section 6055 furnishing penalty relief does not extend to the requirement to furnish Forms 1095-C to full-time employees. As a result, for full-time employees enrolled in self-insured health plans, penalties will continue to be assessed consistent with prior enforcement policies for any failure by ALEs to furnish Form 1095-C, including Part III, according to the applicable instructions. However, the 2020 Section 6055 furnishing penalty relief does extend to the requirement to furnish the Form 1095-C to any non-full-time employees enrolled in an ALE’s self-insured health plan, subject to the requirements of the 2020 Section 6055 furnishing penalty relief.


The 2020 Section 6055 furnishing penalty relief also does not affect the requirement or the deadline to file the 2020 Forms 1094-B, 1095-B, 1094-C or 1095-C, as applicable, with the IRS.


For questions or more info, contact SimcoHR.

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Embrace the Future of HCM: AI, Automation, and Scalability | Simco + isolved

March 24, 2025
The future of work is changing fast, and HR leaders are taking notice. More than half of companies are planning to switch their HCM platform this year—but not just for any solution. They’re looking for intelligent, scalable, and AI-driven technology that doesn’t just process payroll but actively enhances business operations. The days of rigid, outdated systems are over. Now, businesses need platforms that adapt, automate, and evolve alongside them. At Simco, we’re passionate about delivering the most advanced, transformative solutions to our clients. That’s why we’ve partnered with isolved, a recognized leader in the HCM space, to provide our clients with a powerful, AI-enabled platform that makes workforce management effortless. With a focus on automation, predictive analytics, and employee experience, isolved is changing the game for small and mid-sized businesses—and we’re here to help you make the most of it. Why isolved Stands Out in the HCM Market For the second consecutive year, Nucleus Research has named isolved a leader in its HCM Value Matrix for Small and Medium-Sized Businesses (SMBs). The firm’s analysis highlights isolved’s enterprise-grade functionality, designed specifically for SMBs looking to streamline operations, enhance compliance, and leverage AI to drive efficiency. isolved’s adaptability ensures it evolves alongside customer needs. Whether an organization’s HR function matures or its priorities shift, isolved is uniquely positioned to support its success through continuous innovation. In 2024, the company launched 480+ product enhancements directly driven by direct customer feedback. Nucleus Research’s report also highlights several key updates, including: isolved's Candidate Match Tool , an AI-powered feature that evaluates and ranks candidates, streamlining the hiring process. Enhanced Talent Acquisition Services , including recruitment process outsourcing (RPO), job placement assistance, and comprehensive hiring solutions for quick-service restaurants (QSRs). A Broadened Content Library, now with over 95,000 courses designed for employee training, compliance, and professional development. A Next-Gen Time Clock , featuring advanced facial recognition and remote access for secure and accurate time tracking. The Power of Partnership: Simco + isolved While technology is the foundation, the real value comes from how it’s applied. At Simco, we don’t just provide software—we offer a full-service HCM and advisory solution, ensuring that all aspects of workforce management integrate seamlessly. Our clients benefit from: A Dedicated Client Success Manager – Your go-to resource who oversees your relationship with Simco, ensuring that every service—HCM, HR advisory, benefits, insurance, and retirement—works together without gaps. A Fully Integrated HCM & Advisory Solution – No need to juggle multiple vendors for payroll, HR advisory, employee benefits, commercial insurance, and 401(k)/retirement plans. Simco is your one-stop shop for all workforce solutions. Strategic Guidance & Ongoing Optimization – We help businesses maximize their investment in HCM technology while aligning it with compliance, employee engagement, and long-term growth goals. As businesses evolve, so do their workforce management needs. By combining isolved’s leading-edge technology with Simco’s hands-on service and industry expertise, we help businesses stay ahead of change, improve efficiency, and create better employee experiences. Ready to explore the future of HCM? Contact us today to learn more about how we can transform your workforce operations!

How to Protect Your Business from Phishing Attacks and Spoofed Domains

March 3, 2025
Cybercriminals continue to evolve their tactics, making phishing attacks more sophisticated and harder to detect. Every day, countless phishing emails reach inboxes, often with the intent to steal sensitive information or spread malware. Unfortunately, many of these attacks succeed in just a matter of seconds— the median time for users to fall for phishing emails is less than 60 seconds according to the 2024 Verizon Data Breach Investigations Report . With stolen credentials being one of the most popular methods of attack, businesses face increasing risks as these types of cyber threats become more complex and dangerous. How Phishing and Spoofed Domains Work Phishing attacks aim to trick employees into revealing sensitive information, often through: Fraudulent Email Links – These emails appear to be from trusted sources but contain malicious links that install malware or steal login credentials. Look-Alike Domains – Hackers create fake websites that resemble real business portals, altering a single character in the domain (e.g., “micr0soft.com” instead of “microsoft.com”). Credential Theft – Once hackers obtain login credentials, they sell them on the dark web, leading to widespread data breaches. Red Flags: How to Identify a Phishing Email Unusual Sender Addresses – Cybercriminals often spoof email addresses to look like trusted sources. Carefully inspect the sender's domain name for typos, extra characters, or strange formatting. A genuine email from "paypal.com" could be faked as "paypall.com" or "paypal-support.com." Urgent or Threatening Language – Many phishing emails attempt to create a sense of urgency, claiming that an account will be suspended, a payment has failed, or legal action is imminent. If an email pressures you into immediate action, be suspicious. Unexpected Attachments or Links – Hover over hyperlinks before clicking to see the actual URL destination. If the web address looks unfamiliar or mismatched with the sender's identity, do not click. Similarly, attachments that appear out of context—especially ZIP files, PDFs, or Word documents—could contain malware. Requests for Sensitive Information – Legitimate organizations will never ask for passwords, Social Security numbers, or banking details via email. If an email requests confidential information, verify with the company directly using a trusted phone number. Generic Greetings or Poor Grammar – Emails that start with “Dear Customer” instead of your name, or those containing awkward phrasing and misspellings, often indicate phishing attempts. Many cybercriminals operate internationally and use machine translations, leading to unnatural wording. Best Practices to Protect Your Business Train Employees Regularly – Frequent security awareness training helps employees recognize phishing attempts. Past studies by Proofpoint show that companies with ongoing cybersecurity training reduce phishing-related breaches by up to 60%. Implement simulated phishing tests to reinforce learning. Enable Multi-Factor Authentication (MFA) – MFA significantly decreases the chances of an account being compromised, even if login credentials are stolen. Microsoft reports that MFA can block over 99% of automated cyberattacks . Ensure all employees activate MFA for business accounts. Verify Requests Independently – If an email asks for sensitive actions (e.g., wire transfers, login changes, or software downloads), confirm the request through a known and trusted contact method. Never use the phone number or link provided in the email —instead, visit the company's official website or call using a verified number. Monitor and Filter Emails – Implement robust email security tools that automatically flag suspicious messages. Advanced filtering systems, like those offered by Barracuda Networks, can block over 90% of phishing emails before they reach inboxes. Encourage a Report-First Culture – Employees should feel empowered to report suspicious emails even if they are unsure. IT teams can analyze these reports to strengthen cybersecurity measures. Early detection prevents widespread damage. Use a Password Manager – Employees often reuse passwords across multiple accounts, increasing security risks. Encourage the use of password managers like 1Password or LastPass to generate and store complex passwords securely. New Tactic: The Rise of QR Code Phishing ("Quishing") QR code phishing, or "quishing," is a new phishing tactic gaining momentum as attackers exploit the widespread use of QR codes. Unlike traditional phishing, which relies on malicious email links, quishing uses QR codes to redirect users to fake websites designed to steal login credentials. Several factors contribute to quishing's success: Ubiquity : QR codes are now commonly used for payments, tickets, and documents, reducing suspicion when they appear in emails. Minimal Text : Unlike traditional phishing emails, quishing messages often contain little text, making them harder for security systems to flag. Mobile Vulnerability : QR codes are scanned on personal devices, which typically lack the protection of corporate systems. According to Abnormal Security , 90% of quishing attacks involve credential phishing , where users are tricked into entering sensitive data. Another common tactic is using fraudulent MFA alerts, which account for 27% of attacks , while 21% involve fake document-signing requests . Final Thoughts At the end of the day, protecting your company from phishing and cyber threats requires more than just technology—it’s about the people behind it. By fostering a culture of awareness and encouraging open communication, you empower your employees to be the first line of defense. Together, with vigilance and the right tools in place, you can ensure the safety of your sensitive data and build a more secure future for your business.

7 Thoughtful Ways to Celebrate Employee Appreciation Day

February 28, 2025
Employee Appreciation Day, which falls on March 7th this year, is an ideal occasion to express gratitude for the hard work and dedication of your employees. At Simco, we recognize that employee appreciation shouldn’t be limited to just one day, but this day presents a special opportunity to go above and beyond in showing your team how much they mean to the success of your organization. When employees feel recognized and valued, it enhances morale, engagement, and ultimately, productivity. Here are several thoughtful and impactful ways to celebrate Employee Appreciation Day, creating lasting positive effects for both your employees and your company. 1. Personalized Appreciation Nothing shows employees you truly value them more than personalized recognition. Tailor your appreciation efforts to each individual, acknowledging their unique contributions and the impact they’ve made. Personalized gestures help employees feel recognized for the specific work they’ve done, making the appreciation feel authentic and meaningful. You can: Write Personalized Thank-You Notes : Take the time to write handwritten notes to your employees, thanking them for their specific achievements and how they contribute to the company’s overall success. Publicly Acknowledge Contributions : During a company meeting or via a group email, recognize each team member's individual contributions, celebrating their efforts with concrete examples. Employee Spotlights : Feature standout employees in your internal newsletter or on social media to highlight their unique strengths and hard work. 2. Host an Engaging Celebration Employee Appreciation Day is an excellent time to host a celebration that brings everyone together, whether virtually or in person. A well-planned event can boost morale and provide a chance for employees to connect with one another outside of their usual work routines. Ideas for celebration include: Catered Meals or Special Treats : Provide lunch, snacks, or a special treat to make the day feel celebratory. A fun lunch or dessert bar can offer an opportunity for employees to mingle and bond. Themed Events : Host a fun, themed event such as a retro office party or a “thank you” happy hour where employees can unwind and enjoy themselves. Virtual Celebration : For remote or hybrid teams, set up a virtual event like a game or trivia session where employees can engage and laugh together. 3. Offer Tangible Tokens of Appreciation While a simple thank-you is powerful, offering a meaningful gift can take employee appreciation to the next level. Thoughtful rewards can show your team that you not only recognize their hard work but are also willing to invest in their well-being. Consider: Gift Cards : Offer gift cards to popular retailers, restaurants, or online stores, allowing employees to pick out something they personally enjoy. Wellness Incentives : Gifts that promote health and wellness—such as fitness trackers, yoga classes, or access to mental health resources—show employees you care about their overall well-being. Company Merchandise : High-quality, branded merchandise like apparel, accessories, or tech gadgets can serve as a lasting reminder of your appreciation. 4. Invest in Professional Development One of the most meaningful ways to honor your employees is by helping them grow professionally. Employee Appreciation Day is a great time to invest in their future, whether through formal training, new opportunities, or fostering leadership skills. Ways to offer growth opportunities include: Learning Stipends : Offer financial support for employees to pursue further education, certifications, or online courses that align with their career goals. Internal Development Programs : Launch mentorship initiatives or leadership programs that enable employees to expand their skill sets within the organization. Growth Opportunities : Encourage employees to explore new roles or responsibilities that align with their career aspirations, reinforcing your commitment to their long-term success. 5. Encourage Peer Recognition Employee appreciation doesn’t have to be a one-way street from management to employees. Encouraging peer-to-peer recognition helps build a strong team culture, where employees feel supported and valued by their colleagues as well. This helps foster camaraderie and teamwork, which benefits the entire organization. Ideas for peer recognition: Peer-to-Peer Appreciation Platforms : Create an internal platform where employees can nominate or thank their colleagues for their contributions, highlighting specific ways they've gone above and beyond. Recognition Wall : Set up a virtual or physical wall where employees can post messages of appreciation for their peers, encouraging a culture of gratitude. Monthly Recognition : Implement a peer-nominated “Employee of the Month” program to recognize and reward employees for their ongoing contributions. 6. Give Back Employee Appreciation Day also provides an opportunity to show gratitude by giving back to the community. Many employees value working for companies that have a strong sense of corporate social responsibility. By organizing a charitable event or initiative, you demonstrate that your organization cares about making a positive difference beyond the workplace. Ideas for giving back include: Company Volunteer Days : Organize a day of service where employees can volunteer at a local charity or nonprofit, allowing them to contribute to causes they care about while bonding with their colleagues. Matching Donations : Offer to match employee donations to their favorite charities, demonstrating that you support their personal values and causes. Charitable Fundraising Events : Host fundraising activities or auctions with proceeds going to a charitable organization chosen by the team. 7. Seek Feedback Finally, a key part of showing appreciation is listening to your employees and gathering feedback on how they feel valued. Employee Appreciation Day offers the perfect occasion to ask for input on what makes them feel appreciated and what could be improved. This helps ensure that future efforts are even more meaningful. Ways to gather feedback: Anonymous Surveys : Send out a survey asking employees what makes them feel most appreciated and if they have any suggestions for improving recognition practices. One-on-One Check-ins : Arrange individual meetings with employees to hear their thoughts on workplace culture and recognition, providing an opportunity for honest feedback. Cultivating a Culture of Appreciation Year-Round Employee Appreciation Day is a special occasion, but the benefits of recognizing your team should last well beyond this single day. When employees feel consistently valued and appreciated, it leads to higher morale, greater job satisfaction, and increased engagement. By investing in recognition efforts, offering meaningful rewards, and fostering a culture of appreciation, you ensure that your team remains motivated, happy, and productive all year long. At Simco, we believe that lifting and supporting employees is integral to creating a thriving workplace. Whether you celebrate Employee Appreciation Day with gifts, events, or personalized recognition, taking the time to show gratitude is a small gesture that can have a lasting impact on both your employees and your business.

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