Share This Article:
     

The basics of 1095-C compliance

How to be ACA Compliant

 

Background

Starting in 2016, the IRS started requiring Applicable Large Employers (ALE) to file Forms 1094-C and 1095-C as part of the Affordable Care Act. With strict noncompliance penalties in place, these forms cause employers much anxiety.

The filing come quickly each year. Here’s what you need to know to meet ACA compliance requirements for 1094-Cs/1095-Cs:

 

How to define full time & part time employees

  • Full-time Employees: 30+ hours/week or 130+ hours/month
  • Part-time Employees: under 30 hours/week

ALE Criteria

  • 50+ Full-time employees
  • 50+ Full-time employee equivalent: when the work time of 2+ employees adds up to a full-time employee workload.

Example: Roger and Amy are both part-time employees for a company with 49 full-time employees. Roger works 10 hours/week and Amy works 25 hours/week. Combined, Roger and Amy work 35 hours/week. Because the sum total of these employees is over 30 hours/week, the IRS counts them as 1 full-time employee. Now, the company has 50 “full-time” employees and qualifies as an ALE and therefore must file 1094-C and 1095-C forms.

 

ALE checklist

  • Provide minimum essential coverage to all full-time employees
  • If mailing, print forms (links at end of page)
  • File one 1094-C form to the IRS (1095-C summary page)
  • File one 1095-C form to the IRS for every full-time employee employed any month of the calendar year.
  • Distribute personalized 1095-Cs to every full-time employee.

2018 IRS filing deadlines

  • Mailing: File to IRS by February 28th, 2018
  • E-Filing: File to IRS by April 2nd, 2018
  • Employee copies: Distribute by March 2nd, 2018

Still anxious? Let the professionals do it.

All employer BerniePortal users have access to 1094-C and 1095-C reporting for no additional cost. Through this feature, employers can generate all necessary 1094-C and 1095-C forms at once. These forms will auto-populate with each respective employee’s information.

BerniePortal offers mailing and e-filing services as in addition to the HR and benefits software features of the basic Beethoven package. Through these services, you can take the workload completely off your hands and rest at ease knowing your ACA reporting complies with IRS regulations.

 

Interested in learning about BerniePortal's 1095-C/1094-C options?

View Product Sheet

  

Resources

Form 1095-C | Form 1094-C | Instructions: 1095-C/1094-C

Who should handle 1094-C/1095-C reporting

What to do after completing 1095-Cs

Share This Article:
     

Related Posts

  Background Starting in 2016, the IRS started requiring Applicable Large Employers...

  Background Starting in 2016, the IRS started requiring Applicable Large Employers...

  Background Starting in 2016, the IRS started requiring Applicable Large Employers...

  Background Starting in 2016, the IRS started requiring Applicable Large Employers...

Submit a Comment