While employers are in the process of preparing and distributing their 1095 Forms to meet the extended deadline of March 2, 2020, they should remember that the IRS did not extend the Form 1094 reporting timeline.
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Last week our Health Care Reform article explained the Codes for completing Line 14 of Form 1095-C. This week we focus on completing Line 16 of Form 1095-C.
Applicable Large Employers (those with 50 or more full-time/full-time equivalent employees in the prior year) should be in the process of completing their Form 1095 Forms. An ALE must furnish Form 1095-C to full-time employees and employees covered under a self-funded health plan.
The IRS updated Publication 5187, “Affordable Care Act: What You and Your Family Need to Know.” The publication explains the Affordable Care Act and what individuals should understand about how ACA impacts them. It is presented in a Question and Answer format with questions addressing the individual shared responsibility requirement, enrolling in health coverage, the premium tax credit and changes to ACA requirements for 2019. The document also explains the 1095-B and C forms that individual may receive from their employers and/or insurers.
California joins DC and New Jersey in requiring residents, starting this year, to maintain individual health coverage. California residents who do not have health coverage or do not qualify for an exemption will be subject to state tax penalties.
The Tax Cuts and Jobs Act reduced the Affordable Care Act individual shared responsibility payment to $0.00 starting with the January 1, 2019 tax year. The IRS has announced that Form 1040 will no longer have the “full-year health coverage or exempt” box and Form 8965- Health Coverage Exemptions- will no longer be used. A taxpayer does not have to make a shared responsibility payment with a tax return if the taxpayer does not have minimum essential coverage for all or part of 2019.
The Affordable Care Act requires employers that are “applicable large employers” (ALEs) to offer health coverage to their full-time employees or pay a penalty. Employers that are not ALEs are not required, under federal law, to provide health benefits. This makes it important for an employer to know if it is an ALE.
The Affordable Care Act created the Patient-Centered Outcomes Research Institute (PCORI) which is an organization tasked with improving the quality of health care and providing information to help consumers make informed health care decisions.
Yesterday, the 5th Circuit U.S. Court of Appeals held that the individual mandate provision of the Affordable Care Act is unconstitutional. The court did not rule on whether the individual mandate provision could be removed from the ACA with the remainder of the law held intact. This issue of law was sent back to the district court for determination.
The IRS has released final 1094-B/C and 1095-B/C Forms and Instructions for 2019. The Forms and Instructions will be used for completing 2019 tax year health care reform reporting.
