If you are unprepared for the deadline, it may be time to begin considering your options. Taking action now will lessen the risk of overwhelming IRS penalties later.
Here are the basics to get you started with the ACA reporting process.
Choose the Right ACA Form to File
With there are different variants of ACA 1095 forms available, it’s essential to have clarity on the forms you are required to file.
This is a brief summary of the filing requirements of Form 1095-B and Form 1095-C.
If you are a small employer (less than 50 employees) providing minimum essential coverage to your employees (or) a health insurer who offers individual market coverage and insured coverage sponsored by employers, you must file Form 1095 – B.
If you are an employer with 50 or more full-time employees, you are considered an Applicable Large Employer (ALE), and you must file Form 1095-C annually to report the health coverage information of your employees.
Please note that you should include at least one transmittal Form 1094-B or 1094-C along with the 1095 forms you file. You may have to include multiple 1094 forms if you are filing in batches.
Also, you should furnish the form copy to the corresponding recipients within the specified deadlines.
Make Sure You Have the Required Information Available
The main purpose of ACA reporting is to provide the IRS with the required information to ensure that the health coverage offered to employees and individuals is affordable and in accordance with the ACA guidelines.
So, the information you are required to enter in your form includes:
Basic details about your organization and the corresponding employee or individual, such as Name, EIN, and Address.
Details about the health coverage offered, including the months of coverage and plan type. If you are filing Form 1095-C, make sure to add the correct ACA codes on lines 14 and 16.
Details about the other individuals (dependants) covered under your plan.
Complete Your State ACA Reporting
Not just for the Federal ACA Reporting, today is also the deadline for e-filing ACA forms with the following states,
All these states except Massachusetts accept the Federal ACA Form 1095-B/C. Massachusetts requires businesses to file a separate form, i.e., MA Form 1099-HC
Choose a Full-Service Solution like ACAwise!
Choosing an ACA reporting vendor is an important decision, you need to make sure that you can trust them with your sensitive information and that they can meet all of your filing requirements. That’s where ACAwise comes in!
As a SOC 2 Certified provider with a decade of experience in the e-file industry, ACAwise follows the highest standards of data security and can handle complex reporting scenarios.
Reach out to the ACAwis team for more information today!