As businesses navigate the complex world of taxes and compliance, one crucial aspect is the filing of 1095 forms. These forms are essential for meeting the requirements set by the Affordable Care Act (ACA) and ensuring that both businesses and employees comply with health insurance coverage mandates. This article will delve into what the 1095 form is, who needs to file it, the deadlines for filing, and how businesses can efficiently file these forms using the ez1095 software by halfpricesoft.com.
Recent changes in IRS regulation now requires all companies with 10 or more employeees to electronically file. As a result, more companies in the US track and file this information with software like ez1095. Companies tend to prefer software like ez1095 since the software is operated in-house by the company. Consequently it is more secure than using an online service and is more likely to comply with data protection and HIPAA requirements.
What is the 1095 Form?
The 1095 form is a tax form used to report information about health insurance coverage. There are three variations of this form:
- Form 1095-A: Issued by the Health Insurance Marketplace, this form is for individuals who purchased health insurance through the Marketplace.
- Form 1095-B: Issued by health insurance providers and self-insured employers with fewer than 50 employees, this form reports information on minimal essential coverage provided to individuals.
- Form 1095-C: Issued by applicable large employers (ALEs) with 50 or more full-time employees, this form provides information about the health insurance coverage offered to employees.
For businesses, the focus is primarily on Form 1095-C. This form helps the IRS track compliance with the ACA's employer mandate, which requires ALEs to offer affordable health insurance that provides minimum essential coverage to their full-time employees.
Who Needs to File the 1095 Form?
The responsibility to file the 1095 form depends on the type of form and the entity involved:
- Form 1095-A: This form is filed by the Health Insurance Marketplace. Individuals who purchased insurance through the Marketplace do not need to file this form but will receive it for their records.
- Form 1095-B: Businesses under 50 employees, including self-insured employers that are not considered ALEs, must file this form to report individuals' coverage.
- Form 1095-C: Applicable Large Employers (ALEs) with 50 or more full-time employees or full-time equivalent employees must file this form. It reports the health insurance coverage offered to their employees to comply with the employer mandate under the ACA.
Information on how to file this to the federal government can be found here. Information on how to file to state governments can be found here.
Deadlines for Filing 1095 Forms
The IRS sets specific deadlines for the distribution and filing of 1095 forms:
- Employee Distribution: Employers must provide Form 1095-C to their employees by March 31st of each year.
- IRS Filing: For paper filings, the deadline is February 28th. For electronic filings, the deadline is March 31st. It is important to note that businesses filing 10 or more forms must file electronically.
- State Deadlines: It's important to note that certain states have special filing requirements as well. More information about this will be updated in a future article.
These deadlines are often changing depending on year. For 2025, an update page with deadlines will be released once the IRS and states announce new dates.
It is HIGHLY recommended to begin compiling this information well before the deadline. Software like ez1095 allow for employers to begin compiling this information in advance.
How to File 1095 Forms
Filing 1095 forms can be a daunting task, especially for businesses with a large number of employees. Fortunately, ez1095 by halfpricesoft.com simplifies the process. Here's a step-by-step guide on how to file 1095 forms using ez1095:
1. Purchase and Install ez1095
Visit halfpricesoft.com to purchase and download the ez1095 software. Detailed setup instructions can be found here.
2. Enter Company Information
Open ez1095 and enter your business's information, including your Employer Identification Number (EIN), address, and contact details.
3. Input Employee Data
Enter the required employee information, such as names, Social Security numbers, and details about the health coverage offered. This data can often be imported from existing payroll or HR systems to save time.
4. Generate Forms
Once all the necessary information is entered, use ez1095 to generate the 1095-C forms. Review the forms for accuracy and completeness.
5. Distribute Forms to Employees
Print and distribute the 1095-C forms to your employees by the January 31st deadline.
6. File with the IRS and State Governments
Use ez1095 to file your forms with the IRS. If you're filing electronically, the software will guide you through the process. More detailed instructions can be found here.
Information on how to file with state governments can be found here.
7. Keep Records
Maintain copies of the filed forms and any related documentation for your records. This is important for future reference and potential audits.
Conclusion
Compliance with ACA reporting requirements is crucial for businesses, and understanding the 1095 form is a key part of this process. By adhering to deadlines and utilizing efficient tools like ez1095 by halfpricesoft.com, businesses can streamline their reporting efforts and avoid potential penalties. Properly filing 1095 forms not only keeps businesses in compliance with federal regulations but also ensures that employees receive accurate information about their health insurance coverage.