If you had more than 50 full time equivalent employees (FTE) during 2019, the IRS requires that you report whether or not you offered health insurance to your employees for each month of 2020. The 2020 reporting forms 1094-C and 1095-C are due to the IRS by March 1st, 2021. You must deliver a 1095-C to each employee who worked full time in 2021 by March 2nd, 2021.
If your company (and any related companies) did not have over 50 FTE in 2019 no reporting is required unless you were on a self funded medical plan.
If you are not using a payroll vendor, Ease, or another service provider to do the reporting, we recommend you use our tool to track the information and complete the required 1094 and 1095-C forms. The updated 2019 reporting tool is attached to this e-mail.
We recorded a video with step by step instructions on how to use the reporting tool to generate the required 1094 and 1095-C forms. This video explains how to use this tool:
Good news, in addition to extending the filing deadlines, the IRS will also provide 2 other transition relief measures per Notice 2020-76:
• Provide a final extension of good-faith transition relief from penalties related to 2020 information reporting under Sections 6055 and 6056; and
• Provide additional penalty relief related to furnishing 2020 forms to individuals under Section 6055. Section 6055 is reporting for Self Funded plans for groups under 50 employees. Under this relief, employers will only have to provide Form 1095-B to covered individuals upon request. However, the forms still need to be filed with the IRS.
For your reference, we have also attached video instructions for the reporting tool (above), information about affordability safe harbors, and the IRS 1094-C and 1095-C forms and instructions linked here.
It is very important that you have your tax accountant review your forms prior to submission. Maddock & Associates is not a tax accountant and can not give tax advice or guarantee your filing is accurate or complete.
If you have questions or if there is anything more we can do to help you with the reporting or anything else benefits related, please let us know.
Thank you for your business.