ACA Compliance: FAQs regarding IRS Forms 1094-1095

Speculation about health care reform has been in the headlines throughout 2017. But here's what hasn't changed: Employers with 50+ full-time employees must file IRS Forms 1094-1095 to show compliance with the Affordable Care Act.

The updated Forms 1094 and 1095 were published recently, and the deadlines for 2018 calendar year compliance have been set.

Here is an overview of what employers need to know.

WHO NEEDS TO FILE IRS FORMS 1094-1095?

Applicable large employers – companies with 50 or more full-time workers -- must file Forms 1094-C and 1095-C with the IRS. Also, self-insured employers of all sizes are required to file Forms 1094 and 1095.

WHAT ARE IRS FORMS 1094-1095?

They document compliance with the Affordable Care Act for IRS purposes. Form 1094 is essentially a summary sheet for a firm's collective health care offerings for each month of the preceding year, while Form 1095 lists each full-time employee individually and spells out whether the employee was offered coverage.

WHY DO THESE EMPLOYERS NEED TO FILE?

To prove they have complied with the Affordable Care Act and have offered full-time workers health coverage.

WHEN ARE THE FORMS DUE?

Form 1095-C must be postmarked to employees by Wednesday, January 31, 2018. Forms 1094-C and 1095-C are due Monday, April 2, 2018 if filing electronically (Wednesday, February 28, 2018 if filing via paper).

HOW CAN EMPLOYERS FILE?

Companies with at least 250 full-time employees are required to electronically file Forms 1094 and 1095. Those with less than 250 employees can file electronically or manually (on paper).

HOW LONG DO THE FILINGS TAKE?

According to the IRS, Form 1094 takes about four hours to complete, with Form 1095 taking 12 minutes per form -- and one must be furnished for each covered employee.

WHERE CAN FIRMS TURN FOR HELP ON IRS FORMS 1094-1095?

Plexus offers a full suite of filing and preparation services for Forms 1094-1095 and is an IRS-approved transmitter for 1094-1095 returns.

From data collection to distribution of forms to employees, The Plexus Groupe can handle all of your IRS ACA compliance needs.

Our Plexus Technology Services team will import, audit, interpret, review and validate your data for Forms 1094 and 1095. We’ll complete the paperwork and send in the forms.

For more information on our 1094-1095 filing and technology services, contact a Plexus employee benefits client executive in Deer Park, Ill. (847.307.6100), Chicago (312.606.4800), Dallas (972.770.5010), or Oklahoma City (405.840.3033). Let's talk about how we can reduce your aggravation and focus your productivity on what matters most: your business.