If you’re a business owner, pay attention to upcoming ACA reporting deadlines: For Applicable Large Employers, the reporting process includes sending out 1095 forms to both the IRS and employees, with specific deadlines, form types, and filing methods.  Complying with these deadlines is critical to avoiding penalties from the IRS. 

Reporting to Your Employees

ALEs, defined as those with 50 or more full-time or full-time equivalent employees, must furnish Form 1095-C to their employees. This form outlines the health insurance coverage offered by the employer, including details about the coverage provided and the months it was available.

The deadline for distributing Form 1095-C to employees is January 31 of the following year. Your employees need this form because it contains the information they need to complete their individual tax returns, demonstrating compliance with the ACA's individual mandate.

Reporting to the IRS

ALEs must submit copies of Form 1095-C, along with the transmittal form, Form 1094-C, to the IRS. The deadline for electronic filing is March 31, and for paper filing, it's February 28. 

Form 1094-C serves as a summary of the information included in Form 1095-C, providing a snapshot of the employer's overall compliance with ACA regulations. This form acts as a cover sheet for the individual employee statements.

How to File

Employers can file these forms electronically through the Affordable Care Act Information Returns (AIR) system, part of the IRS's FIRE (Filing Information Returns Electronically) system. Electronic filing is encouraged for ALEs with 250 or more forms, but it is open to all ALEs. Alternatively, paper filings can be sent to the IRS.

Ensuring compliance with these deadlines and requirements is crucial, as failure to do so may result in penalties. Employers should prioritize accuracy and thoroughness in completing these forms to avoid potential issues during the IRS review process.

What about those on Individual plans or Small Group plans? 

Those who do not work for an ALE will not receive a Form 1095-C. Instead, those enrolled in Individual plans through the marketplace will receive a Form 1095-A (Health Insurance Marketplace Statement): It provides information about the coverage, including premium amounts, and is used to reconcile any advance premium tax credits received.

Those enrolled in a healthcare plan through employers with self-funded plans or other entities that provide minimum essential coverage will receive Form 1095-B(Health Coverage). This form is typically sent by insurance providers.  

With these important deadlines looming, don’t leave anything to chance. If you have questions or need more assistance with filing methods and dates, call us at Bay Area Health Insurance right away so that we can help you get started.