It’s that time of year. Applicable large employers (ALEs) and certain other employers need to focus on completing their reporting obligations required under the Affordable Care Act (ACA). Here are some
helpful tips and reminders to get you through.
The reporting is used by the Internal Revenue Service (IRS) for three purposes:
While the reporting is sometimes done by the insurance carrier, employers need to be cognizant of their reporting obligations. Employers with fewer than 50 employees (based on average number of employees in 2017) are generally exempt from the reporting requirements for the 2018 reporting year. The exception is for those employers with fewer than 50 employees who offered a self-insured medical plan. In this case, the employer must complete Form 1095-B for every covered employee and their covered dependents. Additionally, one copy of Form 1094-B must be completed for the organization.
Employers with 50 or more employees (based on average number of employees in 2017) are subject to the reporting requirements for the 2018 reporting year. In general, the employer must complete Form
1095-C for every full-time employee (those working 30 hours per week or 130 hours per month) with information pertaining to the offer of coverage. Section III of Form 1095-C only needs to be completed by employers with 50 or more employees who offer a self-insured medical plan. Additionally, one copy of Form 1094-C must be completed for the organization.
There are three deadlines to be aware of:
For more information on the reporting requirements, click here.