The Internal Revenue Service (IRS) has released draft forms and instructions for the 2019 Affordable Care Act (ACA) Reporting. Employers must use the B-Series and C-Series reporting forms (Forms 1094-B, 1095-B, 1094-C and 1095-C) for their 2019 ACA reporting to the IRS. Below is a list of the applicable filing and distribution deadlines.
|File ACA reporting by paper||February 28, 2020|
|Distribute Forms 1095-B/C to employees (if vendor does not distribute on your behalf)||March 2, 2020 (extended from January 31, 2020)|
|File ACA reporting electronically (required for employers filing 250+ forms)||March 31, 2020|
Which employers need to submit ACA reporting?
Employers that sponsor self-insured group health plans and “applicable large employers” or “ALEs” (those employers with 50 or more full-time and full-time equivalent employees in the prior calendar year) must submit ACA reporting. The forms that employers must use depend on whether they are a non-ALE or ALE and whether they sponsor fully or self-insured plans (including level funded plans), as outlined below.
|Fully Insured Plans||Self-Insured Plans (including level funded)|
|Non-ALE||Not Required to File||File Forms 1094-B and 1095-B|
Distribute 1095-B to employees
|ALE||File Forms 1094-C and 1095-C (with Parts I and II of Form 1095-C Completed)|
Distribute 1095-C to employees
|File Forms 1094-C and 1095-C (with Parts I, II, and III of Form 1095-C Completed)|
Distribute 1095-C to employees
What are Forms 1094/5-B and 1094/5-C?
- The B-Series forms are used to report whether individuals have minimum essential coverage.
- The C-Series forms are used to report information about offers of health coverage to determine whether an ALE owes a shared responsibility payment (penalty) and to determine the eligibility of employees for the premium tax credit.
Each set of forms includes a transmittal form (Form 1094-B or 1094-C), which serves as a cover page and provides aggregate information, and an individualized form (Form 1095-B or 1095-C) for each employee for whom the employer is required to report.
The IRS released the following draft forms and instructions for the 2019 reporting:
What is the employer distribution requirement?
Employers who file ACA reporting must distribute Forms 1095-B/C to employees who they offered coverage to in 2019. Note that many ACA Reporting vendors will assist employers with the distribution requirement. The forms must be distributed to employees by March 2, 2020 (the prior January 31, 2020 deadline was extended by the IRS).
These forms were previously used in part to show that individuals complied with the federal individual mandate, which required individuals to have healthcare coverage or face a tax penalty. Even though Congress eliminated the individual mandate penalty beginning with the 2019 tax year, employers still must distribute Forms 1095-B/C to employees in 2020. The information on the forms can still assist employees to determine their eligibility for premium tax credits if they purchased healthcare through the Marketplace Exchange.
Employer Action Items:
|Employer Category|| |
Employer Action Items
|Non-ALEs who sponsor fully insured plans||Do not need to submit ACA reporting or distribute forms to employees.|
|Non-ALEs who sponsor self-insured or level funded plans||File Forms 1094-B and 1095-B to the IRS by February 28, 2020 (paper) or March 31, 2020 (e-filing) and distribute 1095-B to employees by March 2, 2020.|
|ALEs||File Forms 1094-C and 1095-C with the IRS by February 28, 2020 (paper) or March 31, 2020 (e-filing) and distribute 1095-C to employees by March 2, 2020.|
Draft forms and instructions for the 2019 reporting:
The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.