Prepare Employees for 1095-C Form

ACA regulations require Applicable Large Employers to issue eligible employees an IRS 1095-C form. This form may be new for some employees so you may want to ensure they are well informed of what to expect.

At BoomTax, we’ve identified 3 key topics to discuss with your employees in the coming weeks.

1095-C Form Preparation

1.)  Plan ahead. 

Employers should create health plan benefit documents to provide their employees. These documents should contain information about the health care plans available to the employees.  It’s important employees know their options.

Employees also need to be aware of possible penalties when it comes to ACA guidelines. An employee may decide to decline their employer-sponsored insurance. Instead, they may choose to sign up for insurance via an exchange such as the HealthCare Marketplace. This mistake could trigger the IRS to require an individual shared responsibility payment requiring them to pay back any advanced premium tax credits the employee was not eligible to receive.

2.)  Gather information.

Self-insured employers need to prepare their employees to provide certain information.  This information includes the name and SSN (or date of birth) for all covered individuals on their health plans. The employer should have a process in place to help gather all the needed information. This assures their information is kept up-to-date.

3.)  Look for the form. 

The 1095-C  form should be familiar for most employees by now.  For employees who are not familiar with this form, there are a few things they should know:

  • The 1095-C forms must be provided to the employee no later than January 31.
  • Mail or hand delivery are acceptable methods of distributing the forms.
  • Employees can also receive them electronically if they provide consent.

By educating your employees ahead of time, you can speed up your data collection process.  This should help prevent a lot of support questions regarding the new forms.

You can review our sample Q&A that you can provide your employees to help answer any questions they may have about their 1095-C form.

BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.

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