Simplify ACA Reporting with Our Affordable and Accurate Solution
As HR professionals, it's important to anticipate and effectively address employee questions regarding Affordable Care Act (ACA) reporting forms. Here are common questions employees may ask and suggestions on how to respond:
- What is Form 1095-C?
Explain that Form 1095-C is used by large employers to give employees information about health insurance coverage offered, including details about the coverage and who was covered. The information on the form is sent to the IRS.
- Why did I receive Form 1095-C?
Clarify that employees receive Form 1095-C to help them understand the health insurance coverage options available to them. It serves as documentation for tax purposes and ensures compliance with ACA regulations. It is provided to full-time employees and to covered employees if the employer has a self-funded plan. Form 1095-B is provided to covered employees if the plan is insured.
- What do the codes on Form 1095-C mean?
Provide a brief overview of the various codes used on Form 1095-C to describe the coverage offered and its affordability. Offer to explain specific codes if needed or direct employees to look at the back of the form or the IRS publication for more information.
- What should I do with Form 1095-C?
Advise employees to keep Form 1095-C for their records it may be needed for filing taxes in certain states but it is not needed for federal tax filings.
- I received multiple Form 1095-Cs from different employers. What should I do?
Explain that if an employee worked for multiple applicable large employers during the year, they may receive multiple Form 1095-Cs. Encourage them to review each form carefully.
- What if I find errors on my Form 1095-C?
Assure employees that errors on Form 1095-C can be corrected. Advise them to contact the HR department or the appropriate person designated by the employer to address any discrepancies promptly.
- Do I need Form 1095-C to file my taxes?
While Form 1095-C provides important information for tax filing purposes, employees are not required to attach it to their tax returns. However, they should keep it with their tax records in case of any inquiries from the IRS.
By proactively addressing these common questions and providing clear and accurate information, HR professionals can help employees navigate ACA reporting requirements with confidence and ease. Encourage open communication and be readily available to assist employees throughout the process.
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