Do you really have the time it takes to complete 1094-1095 reporting?

Each individual Form 1095-C takes 12 minutes to complete on average, per Internal Revenue Service guidance. In the very best of circumstances, that’s 20 work hours for a firm with 100 full-time workers, each of whom needs a Form 1095-C from her or his firm to comply with the IRS’s Affordable Care Act reporting requirements. Now, let’s check reality: that time -- about half of a normal work week -- does not include the effort it takes to gather the data on health insurance offerings made to full-time employees. It also doesn’t take into consideration that the instructions have exceptions and special rules that may be needed to complete the form properly. So is it really a simple process?

Adding to this layer of complexity is the real challenge of data collection, a double whammy for companies who haven’t been keeping track of the data or don’t have human resource information systems (HRIS). But even if you do have the technology, accurate data is essential.

Firms who offer an employer-sponsored health plan and are subject to 1094-1095 reporting requirements could be responsible for employee data for any month of the calendar year whether they have been keeping track or not. According to the IRS instructions for Forms 1094-C and 1095-C: “An employer that offers health coverage through an employer-sponsored self-insured health plan must complete Form 1095-C, Parts I, II, and III, for any employee who enrolls in the health coverage, whether or not the employee is a full-time employee for any month of the calendar year.”

Do you have the time and experience to keep up with IRS changes? With the Affordable Care Act and all related compliance requirements, it’s important to have a proactive and efficient strategy to keep you in compliance with all legal requirements, including benefit-related legislative changes. That’s why having professional help with the preparation and filing of IRS Forms 1094-1095 for ACA compliance could be a desirable option for many firms.

For more information on how we can support you in the reporting and preparation of IRS Forms 1094 and 1095, contact The Plexus Groupe today by calling 847.307.6100, or by visiting us at


2015 Instructions for Forms 1094-C and 1095-C. Department of the Treasury, Internal Revenue Service.