1095 and 1094: Applicable Large Employers (ALE) 50+ Employees PPACA Responsibilities

The 2015 tax year is the first year Applicable Large Employers will be required under PPACA to report that they have made an acceptable and affordable offer of health insurance to their employees. This offer will be reported on IRS forms 1095 B & C and 1094 B & C. Below are some quick facts to help guide you through the completion of these forms.

1095 and 1094 Forms:

  • 1095 C: Employee’s form proving that they were offered health coverage, similar to a W-2 for PPACA.
  • 1095 B: Employer report that generates the 1095 C. The data that goes into this form can be found on the employers time and attendance or hour tracking program.
  • 1094 B & C are the forms used for a self-funded organization.

1095 and 1094 Issues:

  • Issue 1: Employees who are always just over or just under 30 hours, does the employer offer them health insurance?
  • Issue 2: Seasonal employees who work a lot for a 4 or 5 months, but 10 hours a week or not at all in the rest of the year, does the employer offer them health insurance?

1095 and 1094 Solutions:

  • Employer needs to track the employees hours closely, set a “look back period” and check it monthly to find when new offers must be made within the waiting period of the group. Automation is the best method to handle this.
  • Employers should find out if their current payroll provider offers a solution.
  • Employers should find out if their Accounting Software offers a solution.
  • Early, Cassidy & Schilling, Inc. does offer a web based software from a third party vendor. However, using a solution connected to time and attendance tracking, like payroll, is the best method for handling 1095 and 1094 forms.

As always, Early, Cassidy & Schilling, Inc. (EC&S) is available to assist in any further questions you may have regarding this. Give us a call at 301-948-5800 or email Paul Phelan at phelanpj@ecsinsure.com .

A printable handout with the above information is available on our Articles of Interest page, [Download] here.

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