As HR professionals, staying informed about crucial IRS forms is essential for ensuring compliance with applicable rules and regulations. IRS Form 1095-C is a vital document that provides information about employer-sponsored health coverage under the Affordable Care Act (ACA). The IRS recently released a draft of Form 1095-C to use for 2023 tax year reporting.
In this article, we'll delve into the details of Form 1095-C and its significance for employers and employees.
What is IRS Form 1095-C?
IRS Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is a tax form used by applicable large employers (those with 50 or more full-time employees) to report information about the health coverage they offer to their employees. This form helps the IRS enforce the employer shared responsibility provisions of the ACA.
Key Elements of Form 1095-C:
- Employee Information: The form includes details about the employee, such as their name, Social Security number, and contact information.
- Employer Information: Employers provide their name, address, and employer identification number (EIN).
- Offer of Coverage: This section outlines the type of health coverage offered to the employee, including the months it was available.
- Employee Contribution: Employers indicate the employee's share of the lowest-cost monthly premium for self-only minimum essential coverage.
Importance of Form 1095-C for HR Professionals:
- ACA Compliance: Accurate completion and timely distribution of Form 1095-C are critical for employers to meet ACA reporting requirements and avoid potential penalties.
- Employee Support: Form 1095-C assists employees in understanding their health coverage.
- Data Accuracy: HR professionals must ensure the information provided on Form 1095-C is precise, reflecting the health coverage accurately to avoid discrepancies or penalties.
Conclusion:
As an HR professional, understanding IRS Form 1095-C 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-C, 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.
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