1095-C Filing Dates
In 2010 the Affordable Care Act (ACA) was adopted. ACA is a comprehensive reform bill that provides health insurance coverage for uninsured full-time employees.
Under ACA, certain employers are required to offer health insurance coverage to their full-time employees. These employers are required to send an annual statement to all the employees eligible for this coverage. These statements describe the insurance available to the employee, and typically IRS Form 1095-C is used as that statement.
Who should file Form 1095-C?
The ACA clearly defines which employers have to offer health insurance to their employees. ACA refers to them as “applicable large employers” (ALEs). A company or organization is an ALE if it has a minimum of 50 full-time employees. Under ACA, a full-time employee is someone who regularly works a minimum of 30 hours/per week. Only ALEs are required to file Form 1095-C.
What is the 1095-C?
The 1095-C provides eligible employees of ALEs information related to their health insurance. Even eligible employees who decline to participate in employer-provided health plans will still receive a 1095-C. The 1095-C typically includes the following:
- Details of the employee and the employer.
- Months of the accounting year the employee was eligible for insurance.
- The cheapest premium cost that the employee could have paid.
It is important to note 1095-C will indicate the fact that if an ALE does not offer insurance coverage to its employees. If the ALE does not offer insurance coverage, then the ALE may be subject to financial penalties.
What is the 1095-B?
The 1095-C describes what kind of insurance coverage was made available to a full-time employee, whereas the 1095-B contains the details about the employee’s actual coverage, including the details of the employee’s family dependents that are included in this insurance coverage. Form 1095-B is sent out by the insurance provider and not the employer.
Some organizations pay medical bills for their employees themselves, meaning they are self-insured. When the employer is also the insurance provider, the following applies:
- The employer will send out 1095-B forms.
- In this case, “B” and “C” forms can be combined and sent together by the employer.
When should the 1095-C be sent out to employees?
In 2015 it became mandatory to send out 1095-C forms. Employers must send these out to their full-time employees and the IRS. Employees should have received the 1095-C by the end of January 2023.
Employers who file paper forms will have time till February 28, 2023; if they are filing electronically, they have time till March 31, 2023. Employers with 250+ employees must file the forms to the IRS electronically. Employers who have less than 250 full-time employees have the option to file on paper or electronically. It is essential to know filing dates to avoid penalties from the IRS.
If you need assistance with filing, contact us.