The Affordable Care Act forms are also known as Forms 1094 and 1095 – let’s get to know them a little bit better. ACA Forms: What They Are & What They Do The Affordable Care Act (where the ACA forms get their name) is a healthcare reform law that was passed in 2010. Its purpose is to increase healthcare insurance coverage for uninsured individuals while reforming the healthcare marketplace to make affordable healthcare easily accessible to all people. Though it has been the subject of much criticism, the ACA is still intact, and so are the information return forms used to ensure that all employers are staying compliant with the ACA requirements. The ACA Forms are where businesses and individuals organize and report their contributions to the healthcare costs of employees. The ACA established guidelines for minimum essential coverage, or MEC, which include: Government sponsored programs Employer-sponsored coverage Individual market coverage Grandfathered plans Other health benefits and coverage recognized by the Department of Health and Human Services as minimum essential coverage There are several ACA forms: 1095-A, 1094-B, 1094-C, 1095-B, and 1095-C. Let’s discuss what each form consists of and who is responsible for filling out and submitting it. ACA Forms: 1095-A The Form 1095-A comes from the insurance companies that are participating in ACA healthcare exchanges with businesses and individuals. The insurance company sends this to you (the employer) so that your business can facilitate the filing of the other 1095 and 1094 ACA forms. ACA Forms: 1095-B & 1094-B The B and C versions of these ACA forms are grouped together when submitted. The first of these is the B version, which focuses on health coverage. The 1095-B is issued by self-insured employers that have fewer than 50 full-time or equivalent employees and provide health plans to them. This form reports which months the insured party and his or her family were …
How to File ACA Forms to the IRS
Similar to other tax forms, you can file Affordable Care Act forms by paper or electronically. What are ACA Forms? Affordable Care Act (ACA) forms, also known as ObamaCare forms, report healthcare plan coverage information to the IRS and employees. Employers with 50 or more full-time employees, all self-insured employers, and some insurance companies must file this form. How to File ACA Forms If you have less than 250 ACA forms to file, you can submit paper copies. If you have more than 250 ACA forms, then you need to file electronically using the Affordable Care Act Information Returns (AIR) system. ACA Forms Due Dates You must deliver 1095 forms to your employees by January 31. If you are filing by paper, you must do so by February 28. If you are e-filing, you must do so by March 31. E-filing Benefits Choosing to e-file your ACA forms, even if you have less than 250 ACA forms to file, has many benefits: You have an additional month to file compared to paper filing. You can correct errors by using TIN Checking before you file. Receive an immediate e-filing submission status; it will be “accepted,” “accepted with errors,” or “rejected.” Receive a dated Receipt ID that verifies your submission, which is beneficial if your business receives an IRS Letter 5699, which identifies potential non-filers of the required ACA Information Returns. Troubleshooting E-filing Issues In order to e-file using the AIR system, you must first apply for a Transmitter Control Code (TCC). The application requires your business’s details, including your EIN, as well as the details of two business officials, at minimum, who will be transmitting the information. The application also requires what type of transmission methods you will use. After the application is submitted and it’s accepted by the IRS, the business needs to go through an ACA Assurance Testing System. This test determines whether your business’s technology will ensure that all e-filing will take place …