Understanding Forms 1095-B and 1095-C
Forms 1095-B and 1095-C are a new requirement for some small employers and all large employers. These information forms are used to report to individuals the months of medical insurance coverage and affordability. An employer is considered to be large if they have more than 50 full time equivalents (FTEs).
Employers who are self-insured or self-funded insurance plans with less than 50 FTEs are required to provide Form 1095-B to each employee who is covered by the company’s insurance for any 1 month of 2015. The employer must also complete a Form 1094-B. Similar to a 1096, this forms serves a transmittal to accompany the 1095-Bs that are required to be filed with the IRS.
All employers with 50 or more FTEs are required to provide Form 1095-C to each employee who averages 30 or more hours in any 1 month of 2015 regardless of coverage or offer of coverage. This form also indicates if the coverage meets Minimum Essential Coverages, affordability and the lowest cost of coverage for a single participant. The employer must also complete a Form 1094-C. Similar to a 1096, this forms serves a transmittal to accompany the 1095-Cs that are required to be filed with the IRS.
The due dates for Forms 1095-B and 1095-C are to be post marked no later than January 1st, each year. The 1094-B and 1094-C are due to the IRS by February 28th, each year or March 31st if efiled. For the 2015 1095-B and 1095-C, the due dates have been extended to 3/31/2016. The 2015 1094-B and 1094-C due dates have been extended to 5/31/16, 6/30/16 if efiled. The IRS will not give any further extensions for any reason.
Late filing Penalties
If these forms are filed late, the penalties will be tiered.
- Up to 30 days late $50 per return
- 31 days but before August 1st, $100 per return
- After August 1st, $250 per return
- If considered intentional disregard, $500 per return
- Penalties capped at $175,000