Reporting Your Coverage
We are just eight months away from the implementation of another piece of health care reform. Beginning January 2016, all employers with 50 or more full-time or full-time equivalent employees will need to submit information about the health care coverage they are offering to their employees to the IRS. This new requirement has been set forth by the Affordable Care Act, and in order to avoid tax penalties it is important that your business complies.
In order to report this information, you will need to submit two new forms to the IRS: Form 1095-C and Form 1094-C. The 1095-C is an employee statement, while the 1094-C is a transmittal. Between these two forms, you will send data on your business’s employer identification number, the company’s contact information, certifications that you offer your full-time employees, the minimum essential coverage through a plan you sponsor, information on the share of that coverage that your employees are paying, and details about each full-time employee and the type of coverage they are receiving.
Additionally, starting January 2016 you will need to provide your employees with a written statement outlining the information you are filing about them.
In order to get practice on properly reporting this information, you are able to file it with your 2015 returns. Doing so will require a little extra work, but will also ensure you are not penalized because you do not fully understand the process when it takes effect in 2016.
You have enough on your plate without trying to figure out how to comply with the changing health care regulations. To get the experts on your side to help you stay in compliance and offer great health care to your employees, contact Hoffman Brown Company. We are here to help you get the right California coverage for protecting your team and your company’s bottom line. Call our Sherman Oaks team today!