As HR professionals, staying informed about crucial IRS forms is essential for ensuring compliance with applicable rules and regulations. IRS Form 1095-B is a document that provides information about offers of health coverage under the Affordable Care Act (ACA). The IRS released a draft of Form 1095-B to use for 2023 tax year reporting.
What is IRS Form 1095-B?
IRS Form 1095-B is a tax form used to provide information about the health insurance coverage you had during a specific tax year. This form is typically sent by health insurance providers, government-sponsored health programs, and certain employers to individuals who were covered by their health insurance plans.
The purpose of Form 1095-B is to help individuals verify that they had minimum essential health coverage as required by the Affordable Care Act (ACA). It provides details about the months you and your covered dependents were enrolled in health insurance coverage.
The key elements of IRS Form 1095-B include the following:
- Recipient Information: This section includes the name, address, and Social Security Number (or other taxpayer identification number) of the individual who was covered by the health insurance plan.
- Issuer Information: This section provides details about the entity that provided the health coverage. It includes the name, address, and Employer Identification Number (EIN) or taxpayer identification number of the insurance company, government program, or employer.
- Coverage Information: This part of the form lists the months during the tax year for which the individual or their dependents had coverage. It typically includes checkboxes or codes to indicate the coverage status for each month (e.g., whether the individual was covered for the entire month, part of the month, or not at all).
- Policy Information: If applicable, this section contains information about the health insurance policy, such as the policy number.
Importance of Form 1095-B for HR Professionals:
- ACA Compliance: Accurate completion and timely distribution of Form 1095-B are critical for employers to meet ACA reporting requirements and avoid potential penalties.
- Employee Support: Form 1095-B assists employees in understanding their health coverage.
- Data Accuracy: HR professionals must ensure the information provided on Form 1095-B is precise, reflecting the health coverage accurately to avoid discrepancies or penalties.
Conclusion:
As an HR professional, understanding IRS Form 1095-B is crucial for maintaining ACA compliance and assisting employees in understanding their health coverage benefits. Timely and accurate completion of this form ensures smooth tax reporting and minimizes the risk of penalties. By staying informed about the intricacies of Form 1095-B, including updates to the form each year, HR professionals can streamline the reporting process, empowering both employers and employees to navigate their healthcare responsibilities confidently.
BAS stays up-to date on IRS forms and changes from year to year. For information about BAS’ ACA data collection and reporting services, contact your account manager or solutions@BASusa.com.
Benefit Allocation Systems (BAS) provides best-in class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
