Keeping You Compliant Under the Affordable Care Act

Beginning in 2016, under the Affordable Care Act, employers with 50+ full time employees working 30+ hours a week, were required to submit annual reports to the IRS proving they are meeting the regulations required to provide affordable and credible health insurance. Additionally, at the end of the year, taxpayers and their dependents must be able to prove that they were participating in a qualified health plan.

ACA Reporting Requirements – Section 6056 | Large Employer Reporting

Under Section 6056 of the Affordable Care Act, a large employer subject to the employer shared responsibility provisions must file Form 1094-C plus a Form 1095-C for each employee who was a full-time employee of the employer for any calendar month during the year. The form must include Social Security Numbers for all covered employees and dependents, so if you haven’t added these to your ACA reporting, you need to start now so you will be ready to print forms in January.

Important Dates

  • Filing with the IRS must take place annually by February 29 (if paper filing) and by March 31 (if filing electronically) for the previous year’s coverage.
  • Form 1095-C must be provided to employees no later than February 1st each year for coverage provided to the employee during the previous Calendar year.

What’s the Difference: Form 1094-C, Form 1095-C and Form 1095-B

  • Form 1094-C: This form is sent only to the IRS and is essentially a “cover sheet” for the 1095-C forms. It provides information about:
    • the employer — including address, phone number, employer identification number
    • how many employees it has
    • the name of a contact person
    • and how many 1095-C forms are being sent
  • Form 1095-C: Large employers will provide Form 1095-C to their employees reporting on the type of coverage provided, as well as identification information for each employee and their dependents. They will also be required to send the forms to the IRS alongside Form 1094-C.
  • Form 1095-B: Employers with <50 employees offering health coverage, as well as insurance providers, send the 1095-B form to members of their health plans. The form is used to verify on your tax return that you and your dependents have at least Minimum Essential Coverage.

Essential Coverage. The form includes:

  • The type of coverage you have
  • Your dependents covered
  • The period of the coverage

Misclassifying Workers Can Be Costly

In 2015, The Department of Labor recovered over $246 million in back wages for more than 240,000 employees due to being misclassified as independent contractors. Additionally, misclassifying a worker as an independent contractor, when they should be classified as an employee, could even lead to criminal penalties. So, how can you avoid making this costly mistake? We’ve put together the checklist below to help keep you and your business safe.

As always, our mission is to keep you fair, square, and legal in all areas.


Susan E. Crocker

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