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Summary:

The deadline for employers to furnish Internal Revenue Service (IRS) Form 1095-B (small self-insured employers) and 1095-C (for Applicable Large Employers) to employees is March 4, 2019 (extended from January 31, 2019).

Applicable Large Employers (ALEs), those with 50 or more full time or “full time equivalent” employees in the previous calendar year, who sponsor fully insured and self-insured plans must furnish copies of IRS Form 1095-C to employees.

Non-ALE small employers who sponsor self-insured plans must file and furnish copies of IRS Form 1095-B to individuals for whom they provide minimum essential coverage during the calendar year. Non-ALE employers who are fully insured do not have any document furnishing requirements.

For reporting occurring in early 2019, employers will be reporting and furnishing forms related to coverage for the 2018 calendar year.

How should the 1095-B/C Form be distributed?

Form 1095-B or 1095-C must be hand delivered or properly mailed and addressed on or before March 4, 2019. Statements must be mailed to the employee’s last known permanent address, unless the employee affirmatively consents to receiving Form 1095-B or 1095-C in an electronic format. Sometimes the employer’s ACA Reporting vendor will assist with the document distribution by mail.

What is reported on Form 1095-B and 1095-C?

Small non-ALE employers who sponsor a self-insured group health plan will use 1095-B to report information to the IRS about individuals who receive minimum essential coverage under their plan. Employers must furnish a copy of 1095-B to the person identified as the “responsible individual” on the form, which is usually the primary name on the coverage.

ALE employers will use IRS Form 1095-C to report whether they offered coverage to eligible employees during all twelve months of the calendar year. ALEs must file and furnish a copy of Form 1095-C for each employee who was full time for one or more months of the calendar year.

Forms 1095-B/C are used to report information to the IRS about individuals who are offered affordable, minimum essential coverage.

What might happen if your company does not distribute the form?

The IRS may issue penalties to employers who fail to distribute Form1095-B/C to employees by the required deadlines. For 2019, the penalty is up to $270 per violation. Penalties tend to increase each year. Note that there is a distinct penalty for an employer’s failure to distribute Form 1095-B/C, separate from penalties an employer may owe for non-compliance with other provisions of the Affordable Care Act (such as not offering affordable coverage).

Resources:

IRS Notice 2018-94: Extension of Due Date for Furnishing Statements

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Emerald Law– Emerald is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Emerald enjoys stand-up comedy, live music and writing non-fiction.