Applicable large employers (ALEs) are employers with 50 or more full-time employees, including equivalents (FTEs). Employers who were ALEs in 2018 must comply with IRC Section 6056 reporting in early 2020. Specifically, ALEs must complete and distribute a Form 1095-C to full-time employees by March 2, 2020 (changed from January 31, 2020). The form should detail whether the employee was offered minimum value, affordable coverage during 2019. The forms may be mailed, delivered electronically, or delivered by hand (although proof of delivery in some manner is recommended).
If an employer sponsored a self-insured plan during 2019, it must comply with Section 6055 reporting in 2020. Self-insured employers with 50 or more FTEs must complete Section III of Form 1095-C detailing which months the employee (and any applicable spouse and dependents) had coverage under the employer’s plan. If the self-insured employer has fewer than 50 FTEs, it must complete and distribute a Form 1095-B with such information. Again, the forms must be delivered to employees by March 2, 2020.
Employers must also file the forms with the IRS by February 28, 2020, if filing by paper and March 31, 2020, if filing electronically. Those that are filing 250 or more forms are required to file electronically. Lastly, the employer is required to a file the transmittal Form 1094-C (if filing Forms 1095-C) or Form 1094-B (if filing Forms 1095-B).
As a reminder, the IRS recently provided penalty relief for employers which will allow them to forego distributing the Form 1095-B to individuals. This comes after the IRS accepted comments on the necessity of the Forms 1095-B now that the individual mandate penalty has been zeroed out. As long as employers post a notice on their website that the document is available upon request, and then fulfill any such request within 30 days — they don’t have to distribute the Forms 1095-B to covered individuals. But keep in mind that there is no such penalty relief for Form 1095-C.
Form 1094-C »
Form 1095-C »
Forms 1094-C and 1095-C Instructions »
Form 1094-B »
Form 1095-B »
Forms 1095-B and 1095-B Instructions »