As we are fast approaching the year-end, it is almost that time to file your company’s 1095-C’s regarding health insurance coverage for your employees, if you are an applicable large employer. An applicable large employer is generally a company or organization that has an average of at least 50 full-time employees or full-time equivalents. For the Affordable Care Act, a full-time employee is an employee who works at least 30 hours a week.
It’s even more crucial to prepare for filing your 1095-Cs because the deadline to distribute the forms to employees has been moved from March 31 to February 1.
Planning ahead will limit a lot of stress and headaches as this process requires a lot of information in order for it to go smoothly.
There were many changes from 2015 to 2016. Listed below are some of the major changes that could affect you in 2016.
Changes in Reporting Dates
Form 1095-C’s will be due February 1 to employees. There will be no extensions on reporting deadlines that were automatically issued in the past. The due date to electronically file with the IRS is March 31.
Change to Employer Mandate
Businesses with at least 50 full-time employees or full-time equivalents must generally offer insurance to at least 95% of all full time employees to avoid penalties.
Changes to the Definition of “Affordability” Requirements
The threshold of affordability for the plan has been raised to 9.66% of the employee’s Box 1 on an employee’s W-2, or household income. This percentage was 9.5% in 2015.
Minimum Essential Coverage Penalty Changes
The penalty for 2016 is $2,160 for each full-time employee in excess of 30 employees.
Make sure you keep your data related to your 1095-C’s so you can access it in future years. The IRS has indicated that it could take up to 18 months from the first filing to send out potential penalty letters.
Once again, Hawkins Ash CPAs will be preparing 1095-C’s for employers and would be happy to assist anybody that needs this service. Please visit www.1095hawk.com for more information.