October 02, 2017
Tonya Rule – Hi, I’m Tonya Rule and I work at Eide Bailly. I specialize in the Affordable Care Act. Today we’re going to talk about some common mistakes that employers often make when it comes to their 1095C forms.
Mistake #1: Form Errors
Tonya Rule – So most commonly we see incomplete forms or mismatching of form codes; and what I mean by that is that not all the boxes are always completed on the 1095C or else if you look at line 14 and line 16 on the 1095C, they should be matching. They should make sure that they don’t use codes that do not mean the same thing.
Mistake #2: Thinking there is no filing requirement
Tonya Rule – Often times, businesses will feel that they don’t have a filing requirement, so then they don’t file their forms obviously. What is making them think that is because they’re not counting their full time equivalent employees correctly, or they might be part of a controlled group and that controlled group with all of its full time employees is over the threshold to be a large employer, but maybe one of the entities is a smaller employer with 20 employees. So they feel they don’t have a filing requirement when in actuality they do. Also, plans that are self-funded, always have a filing requirement, even if they are a small employer.
Mistake #3: Form Completion
Tonya Rule – So sometimes clients will not file their forms because they tell me they feel like their insurance company is filing their forms, while the insurance company does have forms to file if it’s a fully insured plan. They do not have the responsibility to file the entities forms so every large employer still has a filing requirement to file their 1095C forms.
Mistake #4: Missing a Step
Tonya Rule – Clients are pretty good about giving their employees a copy of the forms: 1095C forms or the 1095B forms. Sometimes I get a call saying we didn’t realize we also had to submit them to the IRS or they might inadvertently forget to submit them to the IRS. So it’s important in order to avoid all the penalties to make sure you follow all the steps. Give them to the employees and the IRS, remember employees as of now have to be given their forms by January 31 and the IRS has to get a copy by either February 28, if you paper file or March 31 if you e-file the forms.
Mistake #5: Omitting Employees
Tonya Rule - Retirees and part-time employees still need a form if the plan is self-insured. So often times, employers will think they only have to give the forms to full-time employees but remember, if you’re self-insured; all employees that participate in the plan, do need a form.
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Eide Bailly is here to help you avoid unnecessary penalties, whether it’s helping you with the forms, reviewing your form, or just answering questions. Please contact us if we can be of assistance.