ACA Reporting, aca, efiling, aca reporting, affordable care act, boomtax, 1095C, 1094C, step-by-step guide, Tax Year 2018

Preparing Form 1095-C: A Step-by-Step Guide for Tax Year 2018

Before you begin to prepare your ACA reporting, it’s important that you know what information you need to prepare Form 1095-C. This step-by-step guide identifies 7 key topics that will help you correctly and timely file your Form 1095-C ACA reporting. 

1. Identify common law employees

The IRS defines an employee as anyone who performs services for you if you can control what will be done and how it will be done.

2. Identify full-time employees

The IRS has specific guidelines to determine full-time employees.

In short, a full-time employee is an employee who completes at least 30 hours of service per week or 130 hours per month, for a calendar month.

3. Verify TIN information

Verifying taxpayer information for both your payer and employees will help you to avoid potential corrections, penalties, or other costs.

Tools like TINCorrect can help verify the TIN information you have on file with the IRS before submitting your ACA reporting.

4. Confirm ACA required threshold satisfaction

Applicable Large Employers (ALEs) are required to offer at least 95% of full-time employees minimum essential coverage that is affordable and provides minimum value to their full-time employees and their dependents, according to the IRS.

5. Determine affordability safe harbors

Premiums for provided coverage must constitute less than 9.69% of the household income of an eligible employee in order to be considered affordable. The IRS offers three safe harbor options to help determine affordability.

6. Determine a point of contact for employee questions

Your employees will need a good point of contact in order to address any concerns or questions regarding their 1095-C forms.

7. Self-Insured Plans: Identify and gather information 

Self-insured plans must provide information for their covered individuals (employees and dependents), including their name and social security number or date of birth.

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