The IRS recently released final versions of the 2021 Affordable Care Act (ACA) forms, which include 1094-C and 1095-C. What should employers know about this important component of healthcare compliance reporting?
The IRS issued final versions for four 2021 ACA forms, including Forms 1094-B, 1095-B, 1094-C, and 1095-C. The forms can be accessed using the following links:
The IRS also released draft instructions for Forms 1094-C and 1095-C for employers and HR teams, as well as draft instructions for Forms 1094-B and 1095-B.
The Affordable Care Act (ACA) requires employers with 50 or more full-time equivalent employees—known as Applicable Large Employers (ALE)—to offer healthcare coverage to full-time employees or potentially face a fine. The IRS uses Forms 1094-C and 1095-C to keep track of this information from one year to the next. But what, exactly, are each of these forms you file with IRS?
While the forms remain mostly unchanged, there are a few updates to the Form 1095-C. Two new codes (1T and 1U) were added for individual coverage HRAs (ICHRAs)offered to the employee and spouse, but not to dependents. Here's how the new codes work:
The rest of the forms should look familiar from last year.
Established by federal ruling in 2019, individual coverage HRAs are account-based health plans that allow employers to better control healthcare costs by providing employees with defined, non-taxed reimbursements for qualified health insurance expenses.
This can include monthly premiums for individual plans purchased through the Marketplace or through private insurance companies.
Last year, the IRS announced an extension of the furnishing deadline for Forms 1095-B and 1095-C. There is no deadline extension this year. The deadlines are as follows:
Now is a better time than ever to implement tools to ensure your company meets all deadlines to avoid fines. As always, BerniePortal is here to help by providing ACA information and feature to make compliance easier. Use our 1095-C reporting feature to save time and simplify ACA reporting. Schedule a demo today to see it in action before filing deadlines approach.
You can stay informed, educated, and up-to-date with important HR topics using BerniePortal’s comprehensive resources: