Hi, I’m Patti, and I work for the IRS.
Under the health care law, anyone who provides health coverage to individuals has to report some information to the IRS and to those individuals covered by the plans.
This requirement applies to insurance companies and government agencies.
But it also affects some employers.
Now, some provisions of the health care law apply only to employers with a large workforce but this is not one of them.
If you’re an employer who provides self-insured employer-sponsored coverage, you will need to report that coverage regardless of the size of your workforce.
You need to track some information each month during the year, so you can report it at tax time the next year.
You should keep track of two things: first, information about the individuals who enrolled in coverage you provided, and second, the months you provided coverage for each individual.
At the beginning of each year, you’ll prepare statements for the individuals you covered
Then, you’ll also need to file information returns with the IRS.
Be sure to check the dates each year for the reporting deadlines.
Weekends and other factors can affect these dates.
And the deadlines differ depending on whether you file the forms electronically or on paper.
You must file the returns electronically if you have to send the IRS 250 or more.
There are two different forms for reporting.
Most providers and smaller employers will use Form 1095-B.
But if you have 50 or more full-time employees, including full-time equivalents, you’ll need to use Form 1095-C instead.
That’s because you’re considered an applicable large employer, also known as an ALE.
Just like other year-end forms you already file with the IRS, such as W–2s, you’ll file these forms using a transmittal.
That’s either Form 1094-B or C.
To file electronically, also keep in mind, there is a special application process for these health care returns.
Even if you already file other year-end documents, you’ll need to apply separately to file these returns electronically.
To apply, use the Affordable Care Act Information Returns, or AIR, page on IRS.gov.
And to learn more about any of these topics, be sure to visit irs.gov/aca.