The IRS has released draft instructions to accompany the ACA reporting drafts of Forms 1094-C and 1095-C that were released in July. The draft forms were originally released with no instructions. However, with the release of the proper procedure of filling out these forms, employers are made painfully aware of the complexity of this reporting task. The guidelines give a detailed walk-through of information about the forms including the purpose of the forms, who must file, when to file, etc. The instructions, running 13 pages long, give detailed instructions for what is required of each line of the forms.
These forms are not to be overlooked by employers, as it is required under sections 6055 and 6056 for all employers that are subject to employer shared responsibility provisions to provide the IRS with information about offering health care coverage to all of their employees. The employer must provide Form 1095-C for each one of their employees, detailing whether or not they were provided health coverage, when and if they received health coverage, and which family members received health coverage under them, aside from other required information. Form 1094-C is a single form required by employers to give the IRS a summary of the collective Form 1095-C’s provided for each employee. Aside from providing the proper information of health coverage to the IRS, filling out these forms determines whether an employee owes payments and eligibility of employees for premium tax credits.
With the requirement of having to report such detailed information to the IRS, it is important that employers have payroll & employee benefits information available in the same systems in order to more easily complete the forms. Having online payroll services and employee benefits handled by PAYDAY and Beneforce makes reporting easy for you by putting everything in one place and taking care of the reporting process to the IRS for you.
Contact PAYDAY today by seeing how we can help you be ACA compliant and make reporting to the IRS an easy process.