You have probably already put together a game plan for tackling your year-end IRS Tax filings, like your W-2s and 1099s, but have you considered your ACA reporting?
ACA reporting is one of the most stressful components of maintaining your IRS compliance, so we’re here to break it down.
You may already use TaxBandits for your W2s and 1099s and maybe even your quarterly 941, did you know we have a solution for ACA Forms 1095-B and 1095-C as well?
Who Must File ACA Forms?
The Form 1095-C is filed by applicable large employers, or ALEs. These employers are mandated to complete ACA reporting under sections 6056 and 6055 of the IRS Code. These employers have 50 or more full-time or full-time equivalent employees.
The Form 1095-B is generally filed by insurance carriers and other sponsors of health insurance coverage plans. Employers of any size who offer their employees a self-funded health coverage plan must also file this form.
Whether you file the Form 1095-B or 1095-C, you must distribute copies to your recipients in addition to your IRS filing.
What are the ACA Forms?
The Form 1095-B was created by the IRS to report information on individuals who are enrolled in minimum essential coverage or MEC. This form provides proof that an individual was covered by the required level of coverage under the ACA. This was especially important when the individual mandate was in place and individuals without health insurance were subject to penalties.
Form 1095-C is designed by the IRS to capture enough information about the employer’s offer of health insurance coverage and to verify that these employers are in fact meeting the requirements for minimum essential coverage.
When are the ACA Forms due?
The recipient copy deadline is March 2, 2021.
The deadline to electronically file with the IRS is March 31, 2021.
The deadline to file paper copies with the IRS is March 2, 2021. Please note that those submitting 250 or more returns must file electronically.
How do I file ACA Forms with TaxBandits?
Paper filing the Forms 1095-B and 1095-C can be daunting, not to mention extremely time consuming. With TaxBandits you can pick up the pace and prevent simple filing errors from happening.
Filing electronically is the preferred method of the IRS and it must be noted that any organization that is submitting 250 or more returns is required to file electronically.
With TaxBandits, users can take advantage of time-saving features and user-friendly software. If you are filing the Forms 1095-B and 1095-C, you are most likely filing over 50 returns, entering all of this information in manually is not a feasible option.
Our Bulk Upload feature allows you to upload large quantities of information at once, thus eliminating the need for manual entry. Simply download our bulk upload template, fill in the columns with your corresponding information, then upload it back into your account.
Errors in your data are caught during this process. You can easily see where these errors have occurred and resolve them before moving on to complete your forms.
Be sure to take advantage of prepaid credits, this allows you to check-out and transmit your forms more quickly, but you are also able to lock in your best, volume-based pricing.
Printing and mailing your recipient copies
TaxBandits offers a print mail solution for your recipient copies. There is no need to spend unnecessary time at the post office this year, as we can handle mailing your copies. Plus, we ensure that your copies all go to an accurate address, by checking your employees’ addresses against the USPS database.
Ready to get started on your ACA reporting? The sooner you start, the less stress you will be under! Get started today with your free TaxBandits account.