Before you begin to prepare your ACA reporting, it’s important that you know what information you need in preparing 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 by the deadline.
Preparing Form 1095-C – Gathering Information
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.
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.
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. This is a very useful step that not enough employers utilize when preparing Form 1095-C.
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.
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.
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.
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.
Verify State Filing Requirements
Both New Jersey and the District of Columbia have employer mandates regarding ACA filing. Make sure you’re in the know about both the NJ and new DC filing requirements before the deadlines!
Need additional information?
Review our other blog posts to ensure that you’re up to date on all things ACA before preparing Form 1095-C filing.
- Tax Year 2019 Deadlines: Getting Started
- 4 Common ACA Reporting Mistakes
- Quick Guide: Prepare, Distribute, File
You can also contact us at [email protected].
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.