Happy holidays from the IRS!
While many of us are hard at work preparing for the Holidays and getting last minute tasks done at work, the IRS has been thinking about the first quarter of 2020. As we all know, if you’re a self-funded employer, January is the time to start thinking about and complying with a critical health care reform mandate: Providing the IRS with an accurate accounting of health coverage for full-time employees via IRS Forms 1094 and 1095.
Again for 2020, the IRS has agreed to extend the deadline for distributing 1095 forms to employees from January 31, 2020 to March 2, 2020. There is no comparable extension for filing the forms with the IRS. A quick recap of the ACA Reporting Deadlines is below.
Per the Affordable Care Act, health coverage data collected during 2019 must be aggregated and reported to employees no later than March 2, 2020 on IRS Form 1095 and reported to the IRS no later than February 28, 2020 (if filing by mail) and March 31, 2020 If filing electronically) on IRS Form 1094. Applicable Large Employers (those with 50 or more employees), or ALEs, must report using the IRS’ C-series forms, and small employers (those with fewer than 50 employees) offering coverage must report using the IRS’ B-series forms.
MedBen has again partnered with MyBenefitsChannel – also known as Sanorbix – to provide reporting assistance for ALE clients. MyBenefitsChannel has several service options available to help ALEs create and distribute Form 1095-C to employees and prepare and file Form 1094-C with the IRS. MedBen will also be available to assist clients who are small employers by offering related IRS Forms (1095-B – employee notice and 1094-B – IRS transmittal) services for a nominal fee.
As in year’s past, we strongly recommend that our clients purchase these services as soon as possible.
- If you purchased these services from MyBenefitsChannel last year, you will get renewal information from MyBenefitsChannel directly if you have not already done so.
- If you wish to purchase these services from MyBenefitsChannel for the first time, please let MedBen know immediately.
- If you are planning to create these forms yourself or you’re working with another vendor, we would appreciate knowing that too.
Regardless of your preferred approach, it is important that you start planning now. If you need more information on these requirements, or if you have questions, contact Senior Vice President Caroline Fraker at 800-851-0907.