Let BerniePortal keep you HR compliant when filing 1095-Cs
1094-C/1095-C reporting can be confusing and overwhelming.
In fact, most medium-sized to large companies are concerned about meeting the requirements needed to stay compliant with this piece of the Affordable Care Act (ACA). That’s okay - here at BerniePortal, we've got the tools to help you build your HR compliance strategy.
First things first. What is 1094-C/1095-C Reporting?
As of 2016, the IRS requires Applicable Large Employers (ALEs) to file these forms as part of the ACA. The primary goal of this reporting is to communicate health insurance information to the government, proving that your business is compliant with federal regulations around health insurance coverage.
Have questions on how to file 1095-Cs? Check out the latest HR Party of One episode " HR's Guide to 1095-C Forms" below:
What is the 1094-C?
1094-C is essentially the “cover sheet” for an organization’s 1095-C form and is only filed with the IRS. It provides information about the employer, the number of employees at the company, and how many 1095-Cs will be filed.
What about the 1095-C?
The ACA requires that any employer with 50+ full-time employees working at least 30 hours per week offer health insurance to their employees. The 1095-C is the form that employers send to all employees eligible for coverage - regardless of whether they have elected to participate in their employer’s health plan. It communicates health insurance information to the IRS and is needed by employees to file their personal taxes, including:
coverage offered to the employee
cheapest premium available to the employee
months of the year when the coverage was available to the employee
The primary purpose of this form is to make sure that large employers, those with 50+ full-time employees, are offering qualifying healthcare coverage to their employees or they may have to pay a penalty to the IRS. Additionally, 1095-Cs help the IRS track which companies are making health coverage available and therefore can determine which employees may be eligible for subsidies for individual health insurance throughout the year.
Am I required to file 1094-C/1095-Cs to stay compliant?
It’s important to keep in mind that only Applicable large employers (ALEs) are required to file these forms. In order for employers to be considered an ALE, 50 full-time workers or full-time equivalents must be in employment on average during the prior year.
- Full-time Employee: 30+ hours per calendar week or 130+ hours per calendar month on average
- Full-time Equivalent (or FTE): Combination of two or more part-time workers whose hours are equivalent to a single full-time employee.
How seasonal workers affect ALE status
There is actually an exception for seasonal workers.
An employer is not considered an ALE if the employer’s workforce exceeds 50 full-time employees for 120 days or less during a calendar year and the employees in excess of 50 employed during this 120 day period are seasonal workers.
If you are an ALE, use this checklist to make sure you're staying compliant:
- Provide minimum essential coverage to all full-time employees
- File one 1094-C form to the IRS
- File one 1095-C form to the IRS for every full-time employee employed any month of the calendar year
- Distribute individual 1095-Cs to every full-time employee
*Keep in mind: Employers with more than 250 forms must file electronically. Employers with fewer than 250 forms can file via paper or electronically. Remember to file a 1095-C for every single person employed during that calendar year, not just current employees.
Let BerniePortal help solve your HR compliance reporting needs
Now that you have more information about 1094-Cs and 1095-Cs and what it takes to get them filed correctly, you may be starting to realize how much administrative work this is going to be for you or your HR team. You also may be concerned about HR compliance -- or creating error-free reports.
Take a deep breath! BerniePortal takes care of the administrative work for you. Say goodbye to spreadsheets and hello to an organized and user friendly reporting interface.
Not only do we save you an inordinate amount of time and stress, we also exponentially lower your risk of error by automatically updating and generating the report on your behalf. And the icing on the cake? We also offer electronic and traditional filing services.
1095-C Reporting with BerniePortal:
BerniePortal distributes 1094-C/1095-C forms to all employees electronically at the click of a button, and their status can be checked in real-time in the system
The IRS has granted BerniePortal a Transmitter Control Code for electronic filing of ACA information returns, which is required for groups that are filing more than 250 1095-Cs
- BerniePortal offers traditional filing and mailing services for employers with fewer than 250 employees
Since our 1095-C reporting was built natively by the BerniePortal team, changes and edits can be made as quickly and as often as needed
Need additional 1094-C/1095-C resources? Check these out:
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