For Administrators and Employees
What is the Form 8928?
Companies file Form 8928 to self-report the tax due for the following violations:
- Failure to provide required level of pediatric vaccine coverage (Section 2612 of the Public Health Services Act)
- Failure to satisfy Federal COBRA coverage requirements (Section 4980 B)
- Failure to meet market reform, access, renewability and portability requirements (sections 9801, 9802, 9803, 9811, 9812, 9813, and 9815)
- Failure to provide comparable Archer MSA Contributions (section 4980 E)
- Failure to make comparable HSA (Health Savings Account) contributions (4980 G)
When should I file Form 8928?
- For a failure to provide pediatric vaccine coverage or to offer COBRA coverage to a qualified beneficiary (in violation of sections 4980 B and D) the employer or individual responsible for administering benefits under the plan must file Form 8928 on or before the due date of their federal income tax return.
- If the section 4980B or section 4980D violations are by a multi-employer or multiple employer plan, Form 8928 must be filed on or before the last day of the seventh month following the end of the plan year.
- For a failure to provide comparable Archer MSA or HSA contributions (in violation of sections 4980E and G) the employer or individual responsible for administering benefits under the plan must file Form 8928 on or before the 15th day of the fourth month following the calendar year in which the noncomparable contributions were made.
What happens if I don't submit Form 8928 on time?
You will be charged an interest on all unpaid taxes beginning on the due date, even if an extension of time to file is granted. You will also be charged an interest on any penalties imposed for failure to file, negligence, fraud, gross valuation overstatements, and substantial understatements of tax. For further information on the determination of the interest rate, please visit this page: https://www.irs.gov/pub/irs-drop/rr-12-23.pdf
If you fail to file by the return due date, including extensions, you may have to pay a penalty of 5% of the unpaid taxes for each month the filing of the return is delayed, up to a maximum of 25%. Where the return is more than 60 days overdue, the minimum penalty is the lesser of the tax amount or $100. However, you will not be penalized if you can show that the failure to file was due to a reasonable cause, and attach a statement to Form 8928 explaining the cause.
You may also have to pay a penalty for nonpayment of the taxes when they are due, of 1/2 or 1% of the unpaid tax for each month, up to a maximum of 25%. Here as well, the penalty will not be imposed if you are able to demonstrate that the failure to timely pay the tax was due to reasonable cause.
What if I need more time at the filing deadline?
Companies can file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, to request an automatic extension of time to submit Form 8928. The extension must be filed on or before the Form 8928 due date. For assistance with filing this extension, please contact Zenefits.
Where can I find more information about Form 8928?
The IRS website has additional information on Form 8928, including penalties, filing deadlines, and refunds here: https://www.irs.gov/instructions/i89...h01.html#d0e33