Is this news to you? If so, you’re in good hands. Here are some of the most common 1095-C questions answered in plain English, just for you:
What’s this form all about?
As part of the ACA, or Obamacare, companies that employ more than 50 full-time (or full-time equivalent) employees are mandated to make affordable healthcare coverage available to their employees. The 1095-C form lets the government know if that is actually happening.
What key information does the form contain?
The 1095-C contains two important pieces of information:
- The healthcare coverage that was offered
- Who was eligible for coverage (employee, dependents, etc.)
Who is responsible to fill out the form?
Employers are the ones who fill out the form and submit to the government. Employees should be issued a copy of the form for use in completing their personal taxes.
What happens if employees don’t include the 1095-C information on their personal taxes?
Americans can be penalized financially for failing to have healthcare coverage in 2015. The 1095-C documents coverage through an employee-sponsored plan. Penalties vary from year to year, but for tax year 2015, the ACA penalty is 2% of your household’s annual taxable income, or $325 per adult and $162.50 per child, capped at $975. The penalties are expected to be even higher next year.
When are the forms due to employees?
Originally, the delivery deadline was January 31, 2016. Late last month, however, the IRS issued an extension for most organizations until March 31, 2016.
Can the forms be made available to employees electronically?
Not this year, sorry. Paper copies are the option for 2015 versions of the form. There’s always next year though.
Want to take a peek at the form?
We knew you’d be curious! Here’s the 1095-C form in all its glory. It’s a beauty, right? Here’s to another successful tax year almost behind us!