Beginning in 2015, under the Affordable Care Act, applicable large employers (ALEs) with over 50 full-time equivalent employees should be aware of the new filing requirements with the IRS. All ALEs are required to file forms 1094-C and 1095-C. Form 1095-B will be filed by employers offering health insurance to its employees. These forms will need to be provided to the companies’ full-time employees by January 31. The timing is similar to Form W-2.
For companies offering health insurance to its employees through a group plan, Form 1095-B will be prepared by the insurance company. Form 1095-B summarizes the number of months individuals were covered by a health insurance plan. It is similar to Form 1095-A which was sent out to individuals covered in 2014 on the federal or state insurance exchanges.
ALEs are required to file forms 1094-C and 1095-C. Form 1094-C is a summary form, similar to Form W-3. It is used to summarize the number of 1095-Cs filed and provide aggregate information for a controlled group. Form 1095-C is provided to each full-time employee to whom health insurance coverage should have been offered under the ACA regardless if the employee receives the health coverage. 1095-Cs list information such as number of months the employee (and their dependents if self-insured) are covered, the lowest cost monthly premium for self-only insurance, and safe harbor code (if applicable).
The penalty for non-filing has been increased and can be as much as $500 per form.
Most software needs to be upgraded or add-on packages need to be purchased to prepare these forms. KTLLP has the ability to assist in filing forms 1094-C and 1095-C on your behalf. Please call Nina, Kevin or Jennifer on the ACA Team with any questions.