If you were panicking about getting those pesky Forms 1095-B and 1095-C’s out to your employees by January 31, 2018, there’s a little good news. The IRS announced an extension on December 22, 2017 that now provides additional time for Applicable Large Employers (ALEs), those employers with 50 ore more full time employees, to prepare and send the Form 1095-B/1095-C to report information about each employee’s offer of health coverage, affordability and month’s actually covered by the employer plan. Employers that also offer employer-sponsored self-insured coverage will also use Form 1095-C. The new deadline, which is a 30-day extension from the original and is automatic, is now March 2, 2018 to provide the Form 1095-B or 1095-C to individuals. Due dates for filing the 2017 information returns with the IRS are not extended and remain February 28, 2018 for paper filers and April 2, 2018 for electronic filers.
But you thought that the Tax Cuts and Job Act (TCJA) of 2017 put an end to employer ACA reporting?
Well, yes and no. The only item related to the Affordable Care Act was the repeal of the individual mandate, which was the penalty for not actively seeking out and obtaining health coverage. The penalty still remains in effect throughout 2018 and will be $695 per adult or 2.5% of household income in excess of tax filing thresholds, whichever is greater. Employers must continue to report under Section 6055 and 6056 of the Internal Revenue Code regarding minimal essential coverage (MEC). This information is reported on Forms 1094-C (the IRS transmittal) and 1095-C, the employee informational form. For other plan sponsors such as multi-employer plans, health plan issuers, etc., the reporting is done on Forms 1094-B and 1095-B respectively.
Employees do not need to submit the 1095-B or 1095-C with their 2017 individual income tax return.
If you have questions or still aren’t clear on your business’ responsibilities, talk with a Small Business Advisor. You can find one in your area by clicking on the Find an Accountant link above.
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Please be advised that, based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice. Any information contained in this article does not fall under the guidelines of IRS Circular 230.