IRS Releases Draft Forms for Health Coverage Information Reporting by Employers

The IRS has just released a draft of Forms 1094-C and 1095-C.  Both of these forms are required to meet reporting requirements under the IRC sections 6055 and 6056 that were previously released on March 5, 2014.

Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) is to be issued to each employee of an employer that is considered a large business.  A large business is defined as a business that has 50 or more FTE’s (Full Time Equivalents).  The Form 1095-C will be required to have information on each employee’s coverage.  In addition, the Form must also list every single person receiving health insurance under the employee and indicate each specific month the individual received coverage.

Though the government has put a “stay” on Employer Shared Responsibility penalties for employers with 50-99 FTE’s until 2016, all “large employers” are still required to file Forms 1094-C and 1095-C beginning in 2015.  The IRS plans to penalize large employers that do not provide and file Forms 1094 and 1095 under the same provisions as W-2 and W-3 penalties.


Aside from the Form 1095-C required for each employee, the employer is also required to file Form 1094-C, which is the cover page to, and includes totals and information from, the 1095-C.  Similar to Forms W-2 and W-3, if an employer has 250 or more Form 1095-C’s, they will be required to file all forms electronically.


Are you prepared to completely fill out one of these forms for each and every one of your employees?  Contact PAYDAY today and we can give you peace of mind by taking care of all of this for you.




About the Author:

As Director of Operations, Jessica oversees the day-to-day operations for payroll, human resources, tax, finance and client affairs. She also plays an active role in formulating corporate strategy and developing client programs. Jessica believes a company’s success begins with its people. She strives to build a team encompassing excellence and professionalism, and to play a large role in developing the staff on an ongoing basis. Her passion for strong client relationships drives her in ensuring that clients receive the highest level of personal service and the best products in the industry. Jessica joined PAYDAY in 2004, and quickly advanced to Development Coordinator in 2006, when she took charge of Human Resources. She was promoted to Director of Operations in September, 2011.