IRS Forms 1094-C and 1095-C – employers must complete for 2015 tax year

California Health Insurance » California Health Insurance Blog » ACA » IRS Forms 1094-C and 1095-C – employers must complete for 2015 tax year

IRS Forms 1094-C and 1095-C – employers must complete for 2015 tax year

Like the W-2 forms that employers give to employees and the IRS that report wages; beginning in 2016 employers with 50 or more employees must give employees and the IRS a completed 1095-C form .  The 1095-C reports on an employee’s medical insurance coverage.  Few people know that form W-3 is the cover transmittal form for all W-2s sent to the IRS.  Like a W-3, employers will also submit form 1094-C to the IRS as a cover transmittal page.  This IRS Brochure describes the information that “Applicable Large Employers” (ALE) must keep track of on a monthly basis.

“ALE” Employers need to keep track of all employees and be able to identify which month an employee was:

  1. eligible and enrolled in coverage;
  2. eligible and not enrolled (waived or declined coverage);
  3. not eligible (in the new hire waiting period or part-time hours).

Employers should be able to get this information from two documents:

  • monthly health insurance invoice which lists the enrolled employees; and
  • monthly payroll report of all employees.

Most payroll companies should have systems to enable employers easily track this data. Of course, the payroll companies may charge a king’s ransom to do this not-to-difficult job.  Click here for the IRS instructions to forms 1094-C and 1095-C.

If you’d like us to assist you with your employee benefits and become your agent, please call us at 800-746-0045 and ask to speak with Bruce Jugan.

February 20, 2015

2016-08-09T19:03:19+00:00February 20th, 2015 |Categories: ACA, Health Insurance Reform, Large Group Medical Insurance Articles|