YOUR PARTNER IN ACA REPORTING SERVICES
What is Form 1095?
Form 1095, (as part of the individual and employer mandate of the Affordable Care Act, or Obamacare), is a collection of IRS forms used to administer the employer shared responsibility provisions in Section §4980H and to determine the employee’s premium tax credit eligibility.
When Should I File?
For the 2020 reporting year, Forms 1095-B or 1095-C are required to be printed and mailed to employees no later than Mar 2, 2021. These forms are required to be filed with the IRS by February 28, 2021 (if paper filing) or by March 31, 2021 (if transmitting electronically).
Why Should I File?
The IRS uses these forms to issue fines to employers (Subsection A or Subsection B penalties) and employees for failing to meet ACA healthcare coverage requirements. Furthermore, a failure to file Form 1095 will trigger a $250 penalty per return, with an annual cap of $3,000,000.
The Benefits of ACA Reporting Services
Guided Workflow
Intuitive step-by-step guidance to ACA compliance including video tutorials and in-tool assistance.
Attorney Verified
Our calculations have been reviewed by industry leading employee benefits attorneys.
Form Codes
Don't spend time determining codes, we determine Line 14 and Line 16 codes for you.
HIPAA Compliant
Secure data transfer and archival of data and forms, for up to 7 years.
Easy E-Filing
Securely e-file your forms with the IRS, and easily manage corrections and re-submissions.
Print and Mail
No need to manually distribute the employee Form 1095, one-click print-and-mail is available.
Comprehensive Affordable Care Act Reporting Services
Comprehensive Compliance
Look for providers that offer a full suite of services to handle all aspects of ACA reporting, including form generation (1095-B and 1095-C), e-filing with the IRS and employee communications.
Expert Guidance
The best providers have a team of ACA experts who can offer up-to-date advice on compliance and are available to answer your specific questions.
Data Security
Given the sensitive nature of the data involved, ensure the provider adheres to stringent security measures, including encryption and secure data storage practices, to protect your information.
Error Detection and Correction
Providers should have robust systems in place to identify and correct errors before forms are filed with the IRS, reducing the likelihood of penalties.
Technology Integration
Ideal providers offer solutions that seamlessly integrate with your existing payroll or HR software, facilitating smooth data transfer and management.
Customer Support
Responsive and knowledgeable customer support is vital, especially during peak reporting periods, to address any issues that arise promptly.
Frequently Asked Questions
What is ACA reporting fines and who is required to comply?
Affordable Care Act reporting is a requirement under the Affordable Care Act that mandates employers with 50 or more full-time equivalent employees to report health insurance coverage information to the IRS and employees. This includes providing Forms 1095-C to employees and filing Forms 1094-C and 1095-C with the IRS.
What are Forms 1095-B and 1095-C?
Form 1095-B is issued by insurance providers to individuals, detailing the months of coverage. Form 1095-C is issued by employers to employees, detailing the offer and provision of health insurance coverage. The IRS uses both forms to verify compliance with the ACA's coverage mandates.
When are the deadlines for ACA reporting?
Employers must furnish Form 1095-C to employees by January 31st following the end of the reported year and file Forms 1094-C and 1095-C with the IRS by February 28th if filing by paper, or by March 31st if filing electronically.
What are ACA reporting fines for failing to comply with requirements?
Penalties can include fines for failing to file, filing incorrect or incomplete forms, and not providing forms to employees. The specific penalty amounts can vary annually based on inflation adjustments.
Can I file ACA reports on my own, or do I need to hire a service provider?
While it's possible to manage ACA reporting on your own, many organizations choose to hire a service provider due to the complex nature of the reporting requirements, the potential for errors, and the time commitment required.
How do I choose the right ACA reporting services provider?
Consider factors such as the provider's experience with ACA compliance, their technology and integration capabilities, data security measures, customer service quality, and their ability to handle the specific needs of your organization.
What happens if I make a mistake on my ACA reporting forms?
If errors are identified before submission to the IRS, they can be corrected internally. If the IRS notifies you of errors after submission, you will have the opportunity to correct them, though this may involve penalties depending on the nature and timing of the corrections.
Are there any exemptions to ACA reporting fines?
Generally, small employers with fewer than 50 full-time equivalent employees are exempt from ACA reporting requirements. However, self-insured small employers must report coverage information on Form 1095-B.
How can I ensure my data is secure with an ACA reporting service provider?
Inquire about the provider's data security protocols, including data encryption, secure data transfer methods, and compliance with industry standards such as HIPAA. Look for providers with a strong track record of data security.
What should I do if I receive a penalty notice from the IRS for ACA non-compliance?
First, verify the accuracy of the notice. If you believe it to be in error, you can dispute it with the IRS. If the penalty is due to an oversight or error in reporting, consult with an ACA compliance expert or attorney to understand your options for response and correction.
"We quickly realized we did not have the knowledge or expertise to process these documents on our own. We couldn't have been more pleased with CXC. Everything asked was explained in full as we worked our way through from start to finish. I can say we were extremely satisfied with the services and commitment of CXC."
-- Halifax Health, Employee Benefits Manager
Features & Pricing
Feature
$0per form
For beginner level users without variable hour employees.
- Easy step-by-step information collection
- Covers Fully-Insured & Self-Insured Plans
- Auto Calculate Line 14 and 16 codes
- Quickly download 1094/1095 forms
- Covers COBRA & retiree forms
- Simple one-click print and e-file
- Calculate & track variable hour eligibility
- Calculate potential penalty exposure
- Easy to read Workforce Dashboard
- Determine affordability per employee
- Covers banded plans
- Dedicated ACA-certified analyst
- Data mapping and cleansing
Self-Service
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For advanced users needing variable hour tracking and forms.
Full-Service
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For advanced users needing variable hour tracking and forms.