What You Need To Know: 1095 Filing

Another confusing part of Healthcare Reform (PPACA) is the 1095 filing that is taking place this year. There aren’t many things to do from an employer’s perspective but there are a few points that can help calm the frantic HR or CFO and your employees on the new IRS tax forms required for health insurance.  The Affordable Care Act (ACA) requires that health insurance carriers and some employers to provide new health insurance IRS tax forms to members. In the midst of tax season, these new forms will raise lots of questions from your employees

  • Inform your employees ahead of time that regardless of the size of your company, each employee will be receiving a FORM 1095-B from the insurance carrier.
  • If your company has 51 + full time equivalent (full and part-time) employees, then you will want to inform your employees that they will be receiving a form 1095-C in addition to the 1095-B.
  • Per the IRS guidelines in the link below, your employees will not need to send the IRS proof of their health coverage when filing their individual income tax return. However, they should keep any documentation with their tax records.

Sure, this isn’t easy to understand. Welcome to the government! For more detail feel free to visit the link below which will offer more specific answers to your questions.

 

https://www.irs.gov/Affordable-Care-Act/Questions-and-Answers-about-Health-Care-Information-Forms-for-Individuals.

 

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