Central to Affordable Care Act (ACA) compliance and reporting, is understanding of the forms that are required to be submitted to the Internal Revenue Service (IRS) each year. These forms assist individuals in completing their taxes and aid the IRS in enforcing the Patient Protection and Affordable Care Act (PPACA) law.
The four required forms with a brief summary are listed below, along with links to download the 2015 forms directly from the IRS website.
Form 1095-B
The ACA mandates that health insurance providers send their customers an annual statement, Form 1095-B, confirming that they meet the ACA’s minimum essential coverage for the year. Self-insured employers, regardless of their size (even less than 50 employees), must provide employees with a 1095.
Form 1094-B
This is a simple transmittal form that must accompany 1095-B submissions to the IRS. It contains important information including the following:
- Employer Information
- Number of Employees
- Contact Information
- Number of 1095-B forms being transmitted
Form 1095-C
Organizations defined as applicable large employers (ALEs), organizations with more 50 full-time employees or equivalents, must provide health insurance offers to full-time employees. The ACA defines a full-time employee as one with an AVERAGE of 30 hours per week.
Every eligible employee of an ALE is required to receive form 1095-C. This form identifies three key things:
- The employer and the employee.
- The time period the employee was eligible for health care coverage.
- The least expensive monthly premium available to the employee under that plan.
Form 1094-C
Similar to form 1094-B, this form is a transmittal form that must accompany 1095-C submissions. This summary sheet contains important information such as:
- Employer Information
- Number of Employees
- Contact Information
- Number of 1095-C forms being transmitted
Extended Form Due Dates
The IRS recently released Notice 2016-4 extending form due dates. The new deadline for 1095 Forms to Employees and Covered Individuals has been extended from February 1 to March 31, 2016. All 1094 Forms filed on paper with the IRS were due March 31, but are now due May 31, 2016. The deadline for all 1094 Forms filed electronically with the IRS changed from February 20 to June 30, 2016.
Given the extended deadlines, the IRS will not require employees to include 1095 forms with their 2015 tax returns. Employees will be required, however, to check a box indicating that they have minimum essential health coverage and should be advised to keep their 1095 in their tax records. Beginning with tax year 2016, employees will be required to submit their 1095 Form with their tax returns.
