The IRS has released its
final versions of Forms 1094 and 1095, which it will use to enforce
the Affordable Care Act's ("ACA's") employer and individual
mandate penalties and tax-credit eligibility rules. Employers that
are subject to the mandate will use the forms to report information
about health coverage and enrollment for their employees.
Background. Forms 1094 and 1095 implement the ACA's
employer reporting obligations, as provided in Sections 6055 and 6056
of the Internal Revenue Code. (See the Alert of 8/21/14.)
These reporting obligations, which were to become effective in 2014,
were delayed for one year. Thus, the first reports will be due in
2016 for calendar year 2015. Employers have the option to voluntarily
file the forms with the IRS for the 2014 calendar year.
Forms. IRS Form 1095-B is to be filed with the IRS to
verify that individuals have obtained minimum essential coverage that
complies with the ACA's individual mandate. The form is to be
furnished by insurers, government programs and self-insured employers
who are not subject to the ACA's employer mandate. The entities must
also furnish an individual statement to individuals who enroll in
minimum essential coverage.
Employers subject to the
employer mandate will file Form 1095-C with the IRS to verify their
compliance with ACA's employer mandate provisions and to verify their
employees' compliance with the individual mandate. Form 1095-C will
also be used to establish employee eligibility for premium tax
credits when the employer does not offer affordable and adequate
programs and self-insured employers will use Forms 1094-B and 1094-C
to transmit the individual Forms 1095-B and 1095-C to the IRS.
Action Steps for
Employers. Employers that
choose to voluntarily file the forms with the IRS for the 2014
calendar year must do so by February 28, 2015 or by March 31,
2015, if filed electronically. Employers that do not voluntarily file
the forms are advised to review the forms and instructions
in order to identify the information that they must track for
reporting in 2016.