Form 1095-C is used to indicate an offer of coverage was made to an eligible employee by an applicable large employer.
Perhaps the most intimidating (and challenging) part of Form 1095-C codes for new filers is determining what they mean and how to use them for Box 14 and 16 of the 1095-C. The use of short 1 digit, 1 letter codes to express coverage, full-time/part-time status, and affordability is cryptic at best, so we’ve compiled … Read more
Filing Penalties for ACA forms can happen for a variety of reasons, including forgetting to file or not offering coverage. With the increase of tax enforcement from the IRS due to the Inflation Reduction Act, filers need to be sure that they are up to date with all ACA terms and in compliance with all … Read more
Perhaps one of the easiest steps of the ACA preparation process is ensuring accessibility for your employees to contact you or an agent in the event that they have questions regarding their Form 1095-C. Make sure to provide employees with a working call number or other contact option that is reachable during business hours. The … Read more
What is IRS Letter 5699? IRS Letter 5699, Missing Information Return Form 1094/1095-C Letter, is used to make initial contact with the employer. This letter notifies the employer that it may not have filed for the specified tax year, and/or that the employer may not be in compliance because the IRS has yet to receive … Read more
The IRS has provided additional guidance regarding the application of the Consolidated Omnibus Budget Reconciliation Act (COBRA) provisions as they have been amended under the American Rescue Plan (ARP). Learn everything you need to know about COBRA Continuation Coverage below! COBRA Basics This guidance, IRS Notice 2021-46, builds upon the previous Notice 2021-31 and presents … Read more
Employer Shared Responsibility Provisions (ESRP) are an essential part of the Affordable Care Act (ACA). These provisions only apply to certain large employers, known as Applicable Large Employers (ALEs). ESRP requires these employers to offer minimum essential coverage (MEC) that is affordable and that provides minimum value to their employees and their dependents. Failure to … Read more
Preparing Affordable Care Act (ACA) Forms can be difficult, but we are here to simplify things! We have compiled this list to help ensure that you don’t make these common ACA Form errors. Background Information To reduce ACA form errors, it is important to know what these form types are, their differences, and how they … Read more
When beginning your ACA filing, it is important to know who is considered a full-time employee. Determining who is considered a full-time employee may be more difficult than it initially seems. For purposes of Employer Shared Responsibility provisions, the IRS defines a full-time employee as such: “[A]n employee is a full-time employee for a calendar … Read more
All providers of health coverage, including employers that provide self-insured plans, must file their annual 1095-C returns with the IRS to report information about the coverage and each covered individual. Self-Insured Plans: Required Information For self-insured plans, the following information must be reported to the IRS: Self-insured coverage is defined as coverage where the employer … Read more
There are many common mistakes that filers make when completing Forms 1095-C. We’ve compiled a list of the most common mistakes and how to fix them. Common Mistakes Only creating and sending forms to individuals that enrolled in coverage Common Mistake: Many filers assume that a Form 1095-C should only be completed for individuals that … Read more
If you’ve worked with IRS systems before, you know that the rules and errors reported can be a bit obtuse and difficult to follow. To help with this, we have a compiled a list of the most common AIR error codes you can expect to see when filing Forms 1094-C, 1095-C, 1094-B, and 1095-B using … Read more
With a software provider, you can e-file PDF Forms 1095-C by converting the data into an IRS-acceptable format. Can I e-File PDF Forms 1095-C directly to the IRS? No, you cannot e-File PDF Forms 1095-C directly to the IRS. The IRS has very specific requirements for ACA Information Returns that are filed electronically. How can … Read more
Determining when full-time employees should be offered health coverage can be one of the biggest challenges for Applicable Large Employers (ALEs) under the ACA Employer Mandate. ALEs who do not immediately offer coverage to full-time employees may be protected by using certain grace periods provided by the IRS, which are called Limited Non-Assessment Periods. What … Read more
Form 1095-C provides information to both the IRS and the employees regarding health coverage offered by an employer to each employee. What is Form 1095-C? For employers, Form 1095-C combined with Form 1094-C is used to determine whether an Applicable Large Employer (ALE) owes an employer shared responsibility provision (ESRP) payment under IRS section 4980H. For employees, … Read more
Form 1095-B, Health Coverage, is used to report information regarding individuals who are covered by minimum essential coverage (MEC) to the IRS. Eligibility for certain types of coverage can affect a taxpayer’s eligibility for the premium tax credit. This type of filing is typically completed by insurance companies and other coverage providers, such as small … Read more