Forms 1094-1095: The who, what, where, when, why and how regarding Affordable Care Act IRS filings

The Affordable Care Act is in the news as 2017 begins, and the prospect of a partial or full repeal of the bill is something to watch as a Republican-led Congress begins its work. However, for now, the song remains the same for many businesses: ACA remains in place, and the filing of IRS Forms 1094-1095 is mandatory in Tax Year 2016 for businesses employing 50 or more full-time workers.

Here is an overview of what you need to know about the filing of IRS Forms 1094 and 1095 in 2017:

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 is due to employees by Thursday, March 2, 2017. Form 1094-C must be filed with the IRS by Tuesday, February 28, 2017 (if filing on paper) or Friday, March 31, 2017 (if electronically filing).

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?

The Plexus Groupe 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. Let us handle the nuts and bolts of the 1094-1095 experience while providing the ACA compliance expertise you need.

The 1094-1095 experience doesn’t have to be hard. You just need the right compliance partners.

Look no further.

For more information, contact a Plexus client executive at 847-307-6100 (Chicagoland), 972-770-5010 (Dallas) or 405-840-3033 (Oklahoma City).

It's not too late to secure a 1094-1095 filing partner, but the clock is ticking.

Let The Plexus Groupe lend a hand.