What are Form 1095-B & Form 1095-C ?
Under the Affordable Care Act’s employer mandate, those employing on average at least 50 full-time employees and full-time equivalents in the prior calendar year, are required to offer MEC to at least 95% of their full-time employees (and their dependents) that is “affordable” and provides “minimum value” to avoid applicable penalties.
- Forms 1095-B are used to report whether individuals have minimum essential coverage (“MEC”) and, therefore, are not liable for the individual shared responsibility payment.
- Forms 1095-C are used to report information about offers of health coverage and enrollment in health coverage for employees, to determine whether an employer owes an employer shared responsibility payment, and to determine the eligibility of employees for the premium tax credit.
What this Notice 2018-94 Does not Mean ? That the the due date for filing the Forms 1094-B, 1095-B, 1094-C and 1095-C with the IRS, with the due date remaining February 28, 2019, if not filing electronically, or April 1, 2019, if filing electronically.
What is the penalty for not complying with ACA requirements?
Internal Revenue Code Section 4980H(a) (“A Penalty”) fix penalty of $2,320 in 2018 ($2,500 in 2019) for each full-time employee (after deducting 30 employees from count) of the employer.
Section 4980H(b) (“B Penalty”) is $3,480 in 2018 ($3,750 in 2019) for each employee that obtains a premium tax credit
What happens if employers fail to furnish form 1095-B or Form 1095-C within extended period ?
The simple answer is facing penalties from IRS. However, if you still furnish and file the form , although after extension, it may save you from penalties provided you have reasonable cause for such a late filing. This relief is on account of what is called the Good Faith Relief under which the IRS will not impose penalties on employers that can show that they made good-faith efforts to comply with the requirements for calendar year 2018.