Compliance News Week Ending July 19, 2024

Draft Employer Reporting Form 1095s

The IRS released draft versions of the Form 1095-A, Form 1095-B and Form 1095-C used for reporting enrollment in minimum essential coverage and offers of coverage to full-time employees by applicable large employers. The draft forms for 2024 look almost identical to the forms that were used for 2023, suggesting that the process for reporting the information required under §6055 and §6056 is unlikely to see much change for the reporting that will be due in early 2025.

§6055 – The ACA Section 6055 requires reporting of minimum essential coverage (MEC) to the IRS and to furnish statements to the covered individual that show which months during the previous calendar year the individual was covered or not. Under this Code Section, reporting entities will generally file forms 1094-B (transmittal) and 1095-B (an information return).

§6056 – The ACA Section 6056 requires all applicable large employers (ALE) to report certain information about the health coverage they offered to full-time employees in the previous calendar year. ALEs must report this information to the IRS and the ALE’s full-time employees. Under this Code Section, reporting entities will generally file forms 1094-C (transmittal) and 1095-C (an information return) for each full-time employee for any month.

You can find the draft versions of the different Forms on the IRS website.

IRS Request for Comment – ACA Employer Reporting (Form 1094-C & Form 1095-C)

The IRS was looking for feedback on the ACA employer reporting process, specifically the reporting on offers of coverage to full-time employees that is required of applicable large employers (50 or more FTEs).

The IRS was asking for comments regarding:

Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;

the accuracy of the agency’s estimate of the burden of the collection of information;

ways to enhance the quality, utility, and clarity of the information to be collected;

ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and

estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.

It is possible that any feedback could lead to changes (hopefully simplification) of the annual reporting requirements and processes.

Since the draft 1094/1095 forms have been released, chances are there will be minimal or no changes on the horizon regarding the current employer ‘reporting process’.

^{While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.}