Applicable large employers (ALEs) are required to report information about the health coverage they offered, or did not offer to employees for 2021. ALEs are generally entities that employed 50 or more full-time and full-time-equivalent (FTE) employees in the prior calendar year. To meet the reporting requirement, the ALE must furnish Form 1095-C to the employee, or former employee, and file copies, along with Form 1094-C (transmittal), with the IRS, (draft- 1094/1095C Instructions).
Regardless of size, employers who sponsored a self-funded health plan (including level-funded) that provided minimum essential coverage in 2021, are required to report coverage information about enrollees. To meet the reporting requirement, the employer must provide Form 1095-B to the primary enrollee and file copies, along with Form 1094-B (transmittal), with the IRS, (draft- 1094/1095B Instructions). Self-funded employers, who also are ALEs, may use Forms 1095-C and 1094-C in lieu of Forms 1095-B and 1094-B.
It is important to note, there are two new codes when filing the 2021 1095-C forms used for specific individual coverage health reimbursement arrangements or ICHRAs. If you have one of these arrangements, the new codes may be needed for this year’s 1095s.
Submission to the IRS: Forms 1094-C, 1095-C, 1094-B, and 1095-B forms must be filed with the IRS by February 28th, 2022 if filing on paper (or March 31 if filing electronically). Electronic filing is mandatory for entities required to file 250 or more 1095 forms.
Submission to employees: The IRS, after initially saying there would be no automatic deadline extension for delivering Affordable Care Act (ACA) 1095 reporting forms to employees at the start of 2022, has now proposed a permanent, automatic 30-day extension, until March 2, for furnishing employee forms (Forms 1095-B and 1095-C). The proposal says employers and insurers may take advantage of the extension for 2021 reporting forms before the rule is finalized.