Monday, September 19, 2016

Affordable Care Act Transmittal Forms 1094-B and 1094-C

Did you know that there’s more to your Affordable Care Act return than just Form 1095-B or 1095-C? That’s right: your ACA forms must be sent with a transmittal return, either Form 1094-B or 1094-C, each year.

Form 1094-B
Submitted with Forms 1095-B is Form 1094-B, Transmittal of Health Coverage Information Returns. The majority of Form 1094-B consists of basic information about the filer, including name, EIN, and contact information. On Form 1094-B, the filer also needs to report the number of Forms 1095-B submitted with the transmittal form.

Form 1094-B also requires the filer’s signature, title, and date before it can be submitted with the complete ACA return.

Form 1094-C
Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, which is submitted with 1095-C Forms, is a bit more complex than Form 1094-B. Because it requires more information, Form 1094-C is split into three parts:
  • Part I: Applicable Large Employer Member (ALE Member)
    • Part I includes all the basic information about the ALE whose ACA report this 1094-C belongs to, including the name, EIN, address, and person of contact.
    • Lines 9-16 of Part I are filled out if the filer is a Designated Governmental Entity (DGE) filing on behalf of an employer. So in some instances, these lines will need to be left blank.
    • On line 18 of Part I, the total number of 1095-C forms accompanying the 1094-C is included.
    • And lastly, if this Form 1094-C is the authoritative transmittal for an ALE member in a group return, the box on line 19 should be checked. There can only be one authoritative transmittal filed for each employer.
  • Part II: ALE Member Information
    • In Part II of Form 1094-C, the filer will provide information on whether or not they’re a member of an Aggregated ALE Group. They’ll also need to include the total number of 1095-C forms filed by and/or on behalf of the ALE member and indicate if they apply for any Certifications of Eligibility.
    • If the filer has multiple returns, they only need to fill out Part II on the authoritative transmittal Form 1094-C (as indicated by line 19).
  • Part III: ALE Member Information - Monthly
    • In Part III, filers indicate how many full-time employees and total employees they had each month of the year.
  • Part IV: Other ALE Members of Aggregated ALE Group
    • If the filer is a part of an Aggregated ALE Group and checked “Yes” on line 21 of Form 1094-C, they’ll need to complete Part IV.
    • In Part IV, the filer lists the names and EINs of other ALE members of the Aggregated ALE Group.

So there you have it: Forms 1094-B and 1094-C. If you have any further questions about these forms or how to e-file them, don’t hesitate to contact us here at ExpressACAForms! You can give us a call (704-839-2270) or send us a live chat Monday through Friday, 9:00 a.m. to 6:00 p.m. ET. Can’t make it then? Just send us an email to and we’ll get back with you as soon as possible!

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Understanding ACA Form 1095-B

When we talk about the information returns associated with Affordable Care Act, we tend to get hung up on Form 1095-C. It makes sense: Form 1095-C is the form Applicable Large Employers file and they’re the “insurance providers” going through the most changes thanks to the ACA. (And “most change” tends to mean “most attention.”)

That’s why we’re taking this post to talk exclusively about Form 1095-B!

Purpose of the Form
Form 1095-B, Health Coverage, is used to report information to the IRS and taxpayers about the minimum essential coverage of health insurance provided by the filer.

And in case you need a reminder: minimum essential coverage (or MEC) is the least amount of coverage legally required for taxpayers to have each year. While it’s the individual taxpayer’s responsibility to make sure they have coverage that meets MEC, it’s also the responsibility of insurance providers to offer MEC plans as set by the ACA.

Who Needs to File Form 1095-B
Generally, every person that provides MEC to individuals during the calendar year must file Form 1095-B to report the coverage. This does exclude certain employers (ALEs) and government employers who are subject to the employer shared responsibility provisions and therefore must file Form 1095-C.

In other words, health insurance issuers and carriers for most health insurance coverage, including individual market coverage and insured coverage sponsored by employers, as well as small employers need to file Form 1095-B for each covered individual each year.

When to File
If you need to file Form 1095-B with the IRS, you must do so at the beginning of the year following the year you offered coverage. And how you plan to file determines when you’ll need to file.

If you’re sending in paper copies to the IRS, you must submit Form 1095-B, along with its transmittal form, Form 1094-B, by February 28 (or 29). If you plan to e-file, you have until March 31. Keep in mind that if your due date ends up falling on a weekend or legal holiday, the deadline is automatically extended to the next business day.

And speaking of “automatically extended,” you can get an automatic 30-day extension of time to file your 1095-B forms if you file Form 8809 with the IRS by your original deadline.

And How to File
The more traditional way to file your ACA return is to mail it in each year. While the IRS recommends everyone e-file, you really only have to if you have more than 250 forms to file. So if you’re planning for traditional, mail Form 1094-B and your 1095-B forms by your deadline to:
  • Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301
    • If your principal business is in: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, or West Virginia
  • Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999
    • If your principal business is in: Alaska, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Washington, D.C., Wisconsin, or Wyoming

Of course, if you’re looking for a faster, easier, more secure way to file, then you should e-file with ExpressACAForms! With ExpressACAForms, you don’t have to fill out each individual form by hand before mailing it in, which can leave you susceptible to human error and at the mercy of the postal system. Instead, just upload the the ACA information you have using our bulk upload spreadsheet or one of your own, review the forms our program creates for you, and securely e-file them directly with the IRS.

If you have any other questions regarding Form 1095-B or e-filing your ACA return, give us a call! We’re always happy to help. We’re available at (704) 839-2270 and through live chat on our website Monday through Friday, 9:00 a.m. to 6:00 p.m ET and we offer 24/7 customer assistance via email at!

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Friday, September 9, 2016

ACA Form 1095-C Updated for 2016 Filing

Even when it’s not filing season, the IRS makes sure to keep itself busy. Just last month, they released draft Forms 1094-C and 1095-C and published draft instructions for completing them for the 2016 tax year.

While these updates are just drafts, there are already a few changes between the forms you filled out for your 2015 ACA return and the ones you’ll complete for your 2016 return. These changes are likely to stick, however, and once the Forms 1094-C and 1095-C are finalized, they must be e-filed by March 31, 2017.

Form 1094-C Changes
  • Box B of Line 22 is designated “Reserved.” The Qualifying Offer Method Transition Relief is not available for 2016.
  • In Part III, column (b), “Section 4980H” was added before “Full-Time Employee Count for ALE Member.” This was included to remind filers that “full-time employee,” as defined by section 4980H, applies for purposes of this column. ALE Members may not use another definition of FTEs to complete this column.

Form 1095-C Changes
Underneath the title of Form 1095-C, the reminder, “Do not attach to your tax return. Keep for your records.” was added to inform recipients not to file Form 1095-C with their personal return.

Code Changes
  • Code 1I on Form 1095-C, line 14, and Code 2I for line 16 are no longer applicable for the 2016 filing year.
  • New codes for addressing conditional offers of spousal coverage, 1J and 1K, have been added for use on Form 1095-C, line 14, if applicable.

Transition Relief Changes
Only limited transition relief will continue for the 2016 tax year. Because several forms of transition relief were available to employers for the 2015 tax year only, references to these forms of relief have been removed from Forms 1094-C and 1095-C.

E-filing with ExpressACAForms
It’s never too early to set up your ACA e-filing account with ExpressACAForms! As an IRS-authorized e-file provider, we guarantee the most up-to-date and secure software in ACA filing. If you have any questions or need help getting started, just give us a call. Or send us an email! We’re happy to help any way we can!

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