June 2015 CPAdvantage Newsletter: Prepared for the next big ACA deadline?
Complying with the Affordable Care Act (ACA) can be a tricky task. Regulations and deadlines are constantly changing. Let Advantage help you make compliance simpler for your client! We have developed a new ACA Reporting Service to help make completing and filing the required forms easy. Under the ACA, employers with 50 or more full-time employees must report on their health insurance coverage offerings for the 2015 year. This reporting for 2015 is due beginning January 2016. IRS Forms 1094-C and 1095-C will be used to report the information required under Section 6056. These forms detail information about offers of health coverage and enrollment in health coverage for employees and dependents. Those employers that offer self-insured plans have additional reporting requirements using Forms 1094-B and 1095-B.
Other than basic demographic information like names, addresses, social security numbers, and contact information, there is very little data residing in our payroll system that is helpful for completing IRS Information Returns. Although this is the case, Advantage Payroll is going to work with its clients in order to obtain the information necessary for Advantage to complete these forms and file them on behalf of clients who request our services.
Advantage has created a way to capture the data necessary to complete these forms. We will work with clients interested in this service to educate them on the reporting requirements and what we will need in order to file these forms.
Questions & Answers
Q: What is Form 1095-C and how is it used?
This is known as the Employer Provided Health Insurance Offer and Coverage Form. The form is used to report information about each employee including basic demographic information and an indication of which months the employee was offered coverage and the lowest cost of single only coverage. If the company has a Self-Insured Plan, the names and social security numbers of all family dependents that were enrolled in coverage is required too.
Q: What is Form 1094-C and how is it used?
This is known as the Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns Form. This form is used to summarize the total number of Forms 1095-C and provide company-level information. Entities that have common ownership must certify this on Form 1094-C and designate one of the entities in the Aggregated ALE Group’s “authoritative transmittal.” The authoritative transmittal includes aggregated data for the entire common ownership group.
Q: Where can I find these forms?
The forms are all located on the IRS’ official website and can be accessed through the following links. We ask that all clients familiarize themselves with these forms in order to assure they are prepared to provide Advantage with thorough information: