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The Affordable Care Act (ACA) requires an Applicable
Large Employer (ALE) to either offer health insurance coverage to its
employees or risk a costly penalty for ACA non-complaince. As part of that
requirement, the law added §6056 to the Internal Revenue Code (IRC).
IRC §6056 outlines what an ALE must do in order to notify both their
workers and the IRS about the coverage the employer offers.
ALEs must report to the IRS information about the health care coverage,
if any, they offered to full-time employees. The IRS uses this information
to administer the employer
shared responsibility provisions and the premium
tax credit. IRC §6056 requires employers to send Form
1095-C at year's end to each employee who is eligible for employer-sponsored
insurance, regardless of whether they actually participate in the employer's
health plan. Form 1095-C informs the employee of which months out of the
year he/she was eligible for coverage and how much the cheapest premiums
available to him/her would have cost. ALEs must give the IRS transmittal
Form
1094-C with copies of all 1095-C forms. Click
here for §6056 questions and answers.
1095-C User Interface:
The ACA Add-on for Account Ability (try
it now) supports ACA Forms 1095-C and 1094-C.
1095-B (IRS 6055) Compliance:
The ACA Add-on also includes support for ACA Forms 1095-B and 1094-B.
ALEs can furnish the employee with a copy of the Form 1095-C filed with
the IRS or with an approved substitute
form, which Account Ability prints using Item
# 1095BCBLK50, available at the Account
Ability Forms Division.
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