The Affordable Care Act, formally known as the Patient Protection and Affordable Care Act, is a health care statute launched by President Barack Obama in March 2010. In 2016, employers and insurance companies are required by government law to file to the IRS and provide forms and copies to recipients. These forms include 1095-B and 1095-C that must be sent to the IRS after being filled out by employees. There are many preparations human resource specialists should take when researching ACA requirements and 1095-B and 1095-C forms. Here are the three steps all businesses should take when getting ready for ACA reporting.
1. Learn your compliance basics
The most important thing a HR specialist can do is learn the basics of ACA compliance. According to the Obamacare Facts, the ACA is a health care initiative that requires all Americans have health care coverage, or they must pay a penalty charge. A company can purchase large or small-scale plans depending on the size of their organization. For companies with under 50 employees, the company can purchase insurance through the Small Business Health Options Program. If your business does not not allow for employers to file for health insurance under your chosen plan, whether it be private or public, your company will face serious fines. For more about compliance, visit the IRS website for Employer Shared Responsibility Provision information.
Your business must withhold an additional .9 percent on employee wages per month in order to file for ACA reporting. As well, your business may be required to report the value of health insurance coverage the organization currently has. Effective in 2015, your business must file an annual return for 2016 reporting what types of health insurance you offered staff members. Lastly, if your company provides self-insured coverage to employees, you must file an annual return in 2016 reporting what information you actually cover for employees.
3. Getting forms to employees
Companies can receive copies of the 1095-B form if their health care coverage meets the minimum requirements of "minimum essential coverage" under the ACA. Your company's personal health care provider should send out 1095-B forms at the beginning of the calendar tax year. Some employees may receive a copy of the 1095-C form. The only difference between the two forms is that the 1095-B is typically used for large-scale employers while the 1905-C is used for smaller companies. If your company has not received these forms, contact your health care provider immediately.