The ACA has added new IRS employer reporting requirements. These new IRS forms are Forms 1094-C and the 1095-C. Correctly completing these new IRS forms is mandatory under the ACA and will allow your business to continue operating without unnecessary loss due to fines and penalties. Having your Payroll, HR Administration, and Benefits Administration in one system can make the process easier. See ADP.com for further information about ACA compliance and how to successfully gather this information.
Who Needs to File a 1094-C or 1095-C
Employers of a certain size are required to file these forms for the following reasons:
- Employers that have at least 50 full time employees (including full-time equivalent employees) need to file Form 1094-C and Form 1095-C for their full time employees.
- A full time employee is one who has an average of 30 hours of service per week.
- A company with 50 or more full-time employees needs to report specific information about their full-time workers to assist the IRS in determining whether or not that company is subject to a failure to file penalty. A company that has not filed these forms nor provided their full-time workers with health insurance is subject to tax penalties.
- Each full time worker needs to be offered adequate and affordable health insurance in order to avoid penalties.
Affordable Care Act Compliance
Forms 1094-C and 1095-C need to be filled out correctly and filed each year for each employer and employee. These 1095-C forms are due for the first time in January 2016, but the relevant information needs to be gathered ahead of time for each month during 2015. This information needs to be filed each year for each full-time employee.
Your company systems need to be able to provide you with all necessary data to fill out these required IRS forms completely. Having your business systems adequately connected is essential for containing costs and mitigating any company filing risks.