On July 13, the IRS released drafts of 2020 Form 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage and 2020 Form 1095-C: Employer-Provided Health Insurance Offer and Coverage. Applicable large employers (ALEs) will use the final version of the form in early 2021 to show their health coverage complied with the Affordable Care Act (ACA) during 2020.

Requirements for ALEs

Applicable Large Employers (ALE) are organizations which had on average 50 or more full-time equivalent employees during the preceding calendar year. ALEs use Form 1095-C to report whether they offered eligible employees the minimum essential coverage and it meets the minimum value threshold. These requirements apply whether an ALE offered coverage through a group health plan or funded ICHRAs that employees used to purchase coverage for themselves and their families on an ACA marketplace exchange.

In all cases, ALEs must meet the following deadlines.

1095 forms delivered to employeesJanuary 31*
Paper filing with IRSFebruary 28
Electronic filing with IRSMarch 31
*In the past, the IRS has extended the Jan. 31 deadline by 30 days. Source: IRS.

The IRS has not yet announced whether it will again extend the Jan. 31 deadline for furnishing 1095-C forms to employees or offer additional reporting relief because of the COVID-19 pandemic. However, if the delivery deadline is extended, employers may still decide to distribute forms to employees in January along with employees’ W-2 earnings statements.

Need help tracking and filing 1094-C and 1095-C documents?

Created to help employers measure and report on employee hours worked accurately, VisualACA determines the following:

  • Automatically calculates employer’s Applicable Large Employer (ALE) status.
  • Automatically calculates employees’ status – full-time or part-time using working average of 30 hours or more per week or 130 hours per month
  • Features pre-designed or custom reporting functionality so that administrators can easily sort and report workforce data such as employee counts.
  • Provides guidance for managers to help determine the number of hours employees should work to maintain their current status.
  • Provides employees “self-service” capabilities so they can easily and confidentially update personal information such as new addresses or name changes.

A time and attendance system configured with ACA criteria in mind can be an integral support tool for accurate reporting under this new law.

  For more information on Visual ACA,contact Time Equipment Company at 800-977-8463 or sales@timeequipment.com.

*This document simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information about the Patient Protection and Affordable Care Act (PPACA) please visit www.dol.com