About 1094 & 1095 Forms

Unless you’re an accountant or work for the IRS, tax documents can be tricky, to say the least. With names that consist of seemingly random combinations of numbers and letters, it’s often hard to keep everything straight. Still, in order to operate within the law, it’s absolutely critical that you have all of your paperwork in order. One important form that business owners need to be aware of is the 1095-C form and its companion, the 1094-C form. Here’s a quick breakdown:

What are 1094 and 1095 forms?

1094 and 1095 forms are tax documents that pertain to health insurance benefits. Following the passage of the Affordable Care Act in 2010, companies with more than 50 full-time workers became legally required to offer health insurance to their full-time employees. With these forms, an employer attests that they follow the law in this regard. They also verify which individuals at their company accept their offer of benefits and how long the employee has been on their selected plan.

Who is required to submit 1094 and 1095 forms?

Only companies who A) are subject to the employer mandate (meaning they had 50 or more full time equivalent employees in the preceding calendar year) or B) offer a self-funded health plan are required to issue form 1095 or submit for 1094 to the IRS. Companies who offer a fully insured plan and who are not subject to the employer mandate do not have to do either of these things.

I’ve heard that, in 2018, the IRS will not accept tax returns without Patient Protection and Affordable Care Act information. What does this mean for me as an employer?

As of 2018, individual tax returns must include information about the taxpayer’s compliance with the PPACA. In fact, their returns cannot be processed until they have indicated that they either (1) had minimum essential coverage in 2017, (2) were exempt for one reason or another in 2017, or (3) are planning to make a shared responsibility payment from their (expected) tax return in 2018. Having a copy of their 1095 form on-hand will make doing this – and by extension, completing their tax paperwork – considerably easier. This stipulation does not affect employers directly, but it does mean that you’ll want to provide your employees with their 1095 forms within a reasonable amount of time.

1095-A, 1095-B, 1095-C – what do all of these letter designations mean? And how do I know which one(s) I’m supposed to use?

Three distinctly different 1095 forms exist, and the “A,” “B,” and “C” suffixes are an easy way to tell them apart. As a private employer, you really only need to worry about 1095-C; this is the version of the form intended for businesses providing health insurance benefits to their employees. Form 1095-A is only for use by representatives from the Healthcare Marketplace, and Form 1095-B is used by dedicated health insurance companies.

Where can I get the latest 1094 and 1095 forms?

The most recent versions of these forms can be downloaded from the official website of the IRS. Going directly to the Internal Revenue Service for your 1094 and 1095 needs helps ensure that you’re filling out the most current version of these documents.

Have questions? We’ve got answers.

When you own a small company, it’s absolutely essential that you follow all rules and regulations pertaining to tax documents. Even an honest mistake can lead to serious problems down the road for you, your employees, and your business. Fortunately, you don’t have to do it alone: Staff One HR is here to help you with all your tax form queries. Our PEO is here to help your business thrive – and stay on the IRS’s good side!