1094 and 1095 Questions

Many employers are asking questions about who is required to report 1094/1095-C and Forms 1094/1095-B. On December 28th, the IRS issued Notice 2016-4 that explains much of what employers are asking us about these forms.
First, the IRS requires all health insurance carriers to issue the 1095-B to its members by February 1st. This is not an employer responsibility. Second, in the same IRS notice, they have announced an automatic extension for Applicable Large Employers (ALE) additional time to prepare 1094/1095-C forms, which is an employer responsibility. An ALE is any employer who has 50 or more employees or 50+ FTEs. The extension applies to the reporting requirements under Code Section 6055 and Code Section 6056, which are part of the Affordable Care Act (ACA). The February 1st deadline for furnishing Form 1095-C to employees is now moved to March 31, 2016.
Third, and the question we most often receive from our clients is the IRS Notice also provides transitional relief for employees who file their personal income tax returns before they receive Form 1095-C from their employer or 1095-B from the issuer of their health coverage. Employees may rely on other information received from their employer to avoid non-coverage ACA penalties. Once they finally receive their 1095-C form, they need not file an amendment to their tax returns to reflect the information on those forms.