Since the Affordable Care Act (ACA) was put into place in 2010, many companies have been impacted in a variety of ways. Not only are companies required to provide affordable coverage (“minimum essential coverage”) for their employees, but they are also required to provide compliance reporting to the IRS as stipulated by the health care law. ACA reporting adds tremendous responsibility for human resource departments. Starting in January 2016, employers with more than 50 full-time employees must provide a new Form 1095-C to their employees along with the 1094 C form and W-2s, only adding to the myriad of details for HR to handle. The new 1095-C form shows that the employee and/or their family members had qualifying health coverage required by ACA. Employees will need to share this form with a tax preparation company along with the other tax documents when filing their taxes. Companies must provide this form to their employees by the end of January 2016. The following provides important points to keep in mind about the ACA reporting:
- The new 1095-C form must be completed for all full-time employees who have been with the company for at least 1 month of the calendar year, including COBRA plan holders, and provide employees with a copy of Form 1095-C by January 31, 2015.
- Employers must report information for all 12 months of the calendar year on each employee regardless of if they participate in an employer-sponsored group plan and part-time employees enrolled in the employer’s self-insured plan.
- To ensure employees are aware of the new form and necessity for tax purposes, communicate to them via email, postcards, intranet, posters, group meetings or newsletter.
- Send reminder communication to employees so they do not forget to complete and file the form.
- Keep an open line of communication with your employees about important health reform information to address any questions that may arise.
- Make sure to include messaging about the form, as well as other ACA requirements to employees as part of year-end communication.
For more information on the new Form 1095-C, visit https://www.irs.gov/uac/About-Form-1095-C.