Are you an employer that had 50 or more full-time employees in 2015 (including full-time equivalent employees)? If so, you have some major reporting requirements that are approaching fast! Forms 1094-C and 1095-C need to be filed in order to report the information required under sections 6055 and 6056. These sections are about ‘offers of health coverage and enrollment in health coverage for their employees’. Form 1094-C must be used to report to the IRS summary information for each employer and to transmit Forms 1095-C to the IRS. Form 1095-C is used to report information about each employee. In addition, Forms 1094-C and 1095-C are used in determining whether an employer owes a payment under the employer shared responsibility provisions under section 4980H. Form 1095-C is also used in determining the eligibility of employees for the premium tax credit.
A provider of minimum essential coverage that fails to comply with the information reporting requirements may be subject to the general information penalty provisions for failure to file correct information returns and failure to furnish correct payee statements. (Click here to read more information on the IRS website.)
- The penalty for failure to file an information return generally is $250 for each return for which such failure occurs. The total penalty imposed for all failures during a calendar year can’t exceed $3,000,000.
- The penalty for failure to provide a correct payee statement is $250 for each statement for which the failure occurs, with the total penalty for a calendar year not to exceed $3,000,000.
- Special rules apply that increase the per-statement and total penalties if there is intentional disregard of the requirement to furnish a payee statement.
Click here to download this form with more information about 1094-C and 1095-C IRS Reporting Requirements.
You don’t have to worry about making sure you’re in compliance to avoid these penalties… Benefit Innovations Group can help! Contact us now at 216.503.0045 x113.