If you run a business that has 50 or more full-time employees (or the equivalent of full-time employees), then there’s a good chance you need to fill out and submit both 1094-C and 1095-C forms as you prepare for the coming tax season. Specifically, a 1095-C is a form that you must send out to each individual employee; this form contains information on the health care coverage that was offered to the worker, the lowest premium cost that was available, and the number of months the coverage was available. You are required to submit this form to all employees, regardless of whether they accepted their coverage options or not.
On the other hand, a 1094-C is a form that’s submitted to the IRS as a means of reporting the number of employees you have, the number of 1095-Cs you sent out to your workers, and some other basic information about your company.
Originally, the deadline to send all 1095-C forms to employees was February 1, 2016. However, the IRS has extended the deadline to no later than March 31, 2016. As for the 1094-Cs, the original deadline was February 19 for those filing on paper with less than 250 1095-Cs, and March 31 for those filing electronically with more 250 or more 1095-Cs to prepare. The new deadlines are May 31 and June 30, respectively.
Failure to meet the IRS’s new deadlines could subject your business to hefty fines and penalties (up to $250 for each violation), so it’s important that you take the steps necessary to prepare these documents and have them postmarked no later than the new deadlines.
For many employers, preparing these documents and ensuring their accuracy can be an overwhelming task. If you’re looking for additional resources to assist you or would like to provide your employees with better health benefits in the coming year, Bernardini & Donovan Insurance Services is here to help.