2 minute read:
The IRS has released the final versions of the ACA reporting Forms 1094-C and 1095-C, in addition to the reporting instructions for the 2020 tax year, to be filed and furnished by Applicable Large Employers (ALEs) in 2021.
You can find the final 2020 filing instructions by clicking here. The final versions of Form 1094-C and 1095-C for the 2020 tax year are also available for download at the following links:
Be sure to check out our most frequently asked questions pertaining to Form 1095-C here.
Employers should remember that there are a number of new 1095-C codes specific to the 2020 tax year. The codes apply to employers that elect to reimburse employees for the cost of health insurance purchased on the individual health exchange through Individual Coverage Health Reimbursement Arrangements (HRAs)
instead of offering employer sponsored health coverage.
These new codes are to be entered on Line 14 of the 1095-C Form and can be found below:
1L. Individual coverage health reimbursement arrangement (HRA) offered to an employee with the affordability determined using the employee’s primary residence location ZIP Code.
1M. Individual coverage HRA offered to an employee and their dependent(s) with the affordability set using the employee’s primary residence location ZIP Code.
1N. Individual coverage HRA offered to an employee, their spouse and any dependent(s) with affordability determined by the employee’s primary residence location ZIP Code.
1O. Individual coverage HRA offered to an employee only using the employee’s primary employment site ZIP Code affordability safe harbor.
1P. Individual coverage HRA offered to an employee and their dependent(s) (not spouse) using the employee’s primary employment site ZIP Code affordability safe harbor.
1Q. Individual coverage HRA offered to an employee, their spouse and dependent(s) using the employee’s primary employment site ZIP Code affordability safe harbor.
1R. Individual coverage HRA that is NOT affordable offered to an employee; employee and spouse; or dependent(s); or employee, spouse, and dependents.
1S. Individual coverage HRA offered to an individual who was not a full-time employee.
Employers who need assistance in understanding the traditional, recurring 1095-C codes should review our guide here.
With the end of the year approaching quickly, employers should begin thinking about ACA reporting with the IRS as well as furnishing the 1095-C schedules to the appropriate employees. If you need assistance in carrying out these responsibilities, as required by the ACA’s Employer Mandate, contact us to learn about how ACA Complete can help.
