Do you want to know about the 10941095 ACA filing Read our simplified guide

1. Do you want to know about the 1094/1095 ACA filing? Read our simplified guide Purpose of Forms IRS Forms 1094-C and 1095-C are filed by Applicable Large Employers (ALEs are employers with 50 or more full-time employees and full-time equivalent employees) that are required to provide health insurance coverage to at least 95% of their full-time employees under the Affordable Care Act (ACA). But what exactly are these forms? In this article, we are going to understand the things related to 1094/1095 ACA filling in details. So, let’s sink in a little deeper. The role of Form 1094-C Form 1094-C is a transmittal form used to report to the IRS about health insurance coverage- the employer provides to each of its employees. This form basically acts as a “cover sheet” for all of the Forms 1095. Form 1094-C includes the following information: Address, phone number, and employer identification number of the Applicable Large Employers Total number of general employees and full-time employees Contact person Total number of 1095-C forms being submitted Eligibility certifications Aggregated ALE group members The role of Form 1095-C Form 1095 is used to furnish information about the health insurance coverage, provided to each of the full-time employees (or full-time equivalent employees) of an organization. The form needs to be sent to both of your employees and the IRS. Form 1095-C includes the following information: Healthcare coverage offered to the full-time employees Lowest cost insurance premium available to the employee The coverage was available for how many months of the year Who must file Forms 1094-C and 1095-C? Qualifying ALEs under the Affordable Care Act (ACA) have to file Form 1094-C and Form 1095-C for each employee who was full-time for any month of the calendar year. The ALE is required to supply a copy of Form 1095-C to the employee. dfinsurance.com Page 1

2. Employers that have fewer than 50 employees and sponsor self-funded health plans aren’t really off the hook. They need to file Forms 1094-B and 1095-B, which are the same as Forms 1094-C and 1095-C, but they are for smaller organizations with different compliance policies. When to file Forms 1094-C and 1095-C? Forms 1094-C and 1095-C have definite requirements that need to be fulfilled before filing them. The forms need to be properly addressed and mailed to the IRS on or before the due date. Note: 1.If the regular due date falls on a legal holiday or a weekend, i.e., on Saturday or Sunday, then file the forms by the next business day. 2.Any day that is not a Saturday, a Sunday, or a legal holiday is considered a business day. If filing on paper, the forms must be filed with the IRS by February 28 and if filing electronically, the forms must be filed by March 31 of the year, following the calendar year to which the return relates. Example: For the calendar year 2020, the forms are required to be filed with the IRS by February 28, 2021, if filing on paper, or March 31, 2021, if filing electronically. The electronic filing of the forms is only applicable to those employers who are required to file 250 or more information returns. What are the penalties for failing to comply with the information reporting requirements? Employers failing to file forms 1094-C and 1095-C on time are fined up to $280 for late/incorrect Forms 1095-C furnished to employees. Similarly, they are also charged $280 for late/incorrect Forms 1094-C and 1095-C filed with the IRS. So, the total penalty per employee comes down to $560, but in some cases, exceptions may apply. Final Tips If your organization is regularly failing to meet the deadlines for 1094/1095 ACA filing or if you want to get started on your ACA reporting, contact Davidow Financial & Insurance Services Inc. today to learn the best practices for ACA filing. dfinsurance.com Page 2