In January, 2016 you will begin to receive several forms if you are either enrolled in the Health Insurance Marketplace or your employer is considered a “large employer”.
Form 1095-A is used to report certain information to the IRS about individuals who enroll in a qualified health plan through the Health Insurance Marketplace. This form is also furnished to individuals to allow them to take the premium tax credit, to reconcile the credit of their returns with the advance payments they have already received, and to file an accurate tax return.
Please note that anyone who has health insurance through the Health Insurance Marketplace will receive the Form 1095-A and will need to report this information on their tax return or provide the form to their tax professional.
Employers, there are two new forms this year that you may be responsible to complete: Form 1095-B and Form 1095-C. All Applicable Large Employer Members are required to file Forms 1095-B and 1095-C. An ALE member for 2015 is defined as employers with 100 or more full-time employees (including the full-time equivalent employees) in the previous year. For 2016 this will decrease
to 50 or more full-time employees (including the full-time equivalent). These forms report information about offers of health coverage and enrollment in health coverage for their employees.
Form 1095-B is used to report information to the IRS and to taxpayers for individuals who are covered by minimum essential coverage and therefore are not liable for the individual shared responsibility payment. These include government and employer sponsored plans, individual market plans, and other coverage designated by the Department of Health and Human Services. Every person that provides minimum essential coverage to an individual during the year must file this information return reporting the coverage.
Health insurance issuers and carriers must file Form 1095-B for must health insurance coverage, including the individual market coverage and insurance coverage sponsored by employers.
This form is to report employer-provided health insurance coverage. All information must be completed and sent to both the IRS and to the employee. Again this is required if you meet the criteria of a large employer member. You will report offer and coverage for all 12 months, and all information for all individuals covered. If you have a payroll service they will be requesting this information as part of your new employee package.
Please remember to bring all forms relating to the Health Insurance Marketplace to your tax professional. These are critical in preparing your return.
References: Instructions for Form 1095-A, 1094-B & 1095-B, 1094-C & 1095-C Department of the Treasury IRS Publication 5223 Department of the Treasury IRS