Introducing The Employer’s Guide to Coding ACA Form 1095-C
The fourth quarter is right around the corner and with it comes the inevitable tax filing season. Employers should give special attention to their ACA reporting obligations this year as there are a number of significant developments that will add complexities to the now seven-year-old reporting requirement.
For FY 2022, the IRS is receiving nearly $1 billion in additional funding for tax enforcement, including the ACA’s Employer Mandate. Under the ACA’s Employer Mandate, employers with 50 or more full-time employees and full-time equivalent employees, known as Applicable Large Employers (ALEs) must:
- Offer Minimum Essential Coverage (MEC) to at least 95% of their full-time employees (and their dependents) whereby such coverage meets Minimum Value (MV); and
- Ensure that the coverage for the full-time employee is deemed affordable based on one of the IRS-approved methods for calculating affordability.
A recent report issued by the Treasury Inspector General for Tax Administration (TIGTA) recommended that the IRS do more to assess ACA penalties on employers, including penalizing those that complied with the law but failed to report the information accurately.
That being said, we thought it would be best to create the Employer’s Guide to Coding ACA Form 1095-C. This all-new resource provides you with actual coded 1095-C forms as well as explanations as to why codes were used and if they pose any ACA penalty risk to the organizations filing them.
In addition, the guide includes a 1095-C code glossary that defines all of the different codes that can be populated on Lines 14 and 16 of the 2021 ACA Form 1095-C.
With this resource, you can see how three uniquely different organizations file their ACA information with the IRS. Not only does the guide explain why certain codes were used, it also breaks down what the individually coded 1095-C communicate to the IRS.
If you’re uncertain about the new codes that were recently introduced and want to learn more about exceptions for not extending an offer of coverage, this resource is for you. Even if you’re an expert in ACA reporting, it doesn’t hurt to cross-reference your application of the codes with our glossary and in-depth examples.
Download The Employer’s Guide to Coding ACA Form 1095-C and start the ACA reporting season off the right way.
For information on ACA penalty amounts, affordability percentages, important filing deadlines, steps for responding to penalty notices, and best practices for minimizing IRS penalty risk, download the ACA 101 Toolkit.
