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IRS Form 1095: Mandatory Healthcare Tax Reporting for Employees and Employers

Chip Arndt

Chip Arndt

Executive Vice President

Video and Video Postcard Communications Are Effective Solutions to Educate Employees

Overview of Form 1095 (A, B and C)

health insurance formMuch like the IRS uses Form W-2 to determine whether or not you owe taxes, starting with the 2015 tax year and every year thereafter, Form 1095 (A, B or C) will be used to report information about your healthcare coverage mandated by the Affordable Care Act (ACA) to determine whether:

• You and your dependents are in compliance with federal law

• Your employer is in compliance with federal law by offering healthcare insurance to its eligible employees

Think of Form 1095 as your “proof of healthcare insurance” for the IRS that is required under the new ACA, which requires Americans to have a basic level of health insurance. Those who don’t validate having health insurance for each month of the year may be required to pay a penalty. Three important things to note are:

• It is mandatory by federal law that employees and employers report information on healthcare coverage to the IRS using Form 1095 for the 2015 tax year and every year thereafter to avoid penalties and fines

• You may receive Form 1095-C even if you declined to participate in your employer’s health plan

• You need information from Form 1095-A, 1095-B or 1095-C to prepare your taxes every year, as this information is required to fill out other forms

This is the first year that the Affordable Care Act, sometimes referred to as Obamacare, requires whoever provides minimum essential coverage to an individual to send that person a copy of Form 1095-B, in the case of the insurer, Form 1095-C, in the case of employers, and From 1095-A, in the case you are enrolled on a healthcare marketplace/exchange. These forms are also sent to the IRS. Form 1095-C , 1095-B and 1095-A report similar information to the IRS about:

• Whether your employer offered you health coverage

• Whether you were eligible for employer-provided health coverage

• If the coverage was in compliance with ACA requirements about individuals who are covered by minimum essential coverage and, therefore, are not liable for the individual shared-responsibility payment, also known as a tax penalty

• What months your were covered to comply with ACA legal requirements

• Details about the cost of coverage offered to you

• Who in your family was eligible for employer health coverage as a dependent

Did you receive any type of Form 1095 and you’re not sure what to do next?

IRS Form 1095 FAQNo problem, we have you covered with answers to the most frequently asked questions about these new forms. It is important to understand IRS tax-reporting requirements related to Form 1095, so you do not face penalties or fines. Flimp Communications is providing a helpful complimentary overview video and Q&A PDF. Click here to access the PDF document and see below about the complimentary video. The FAQ document answers over 20 questions, including:

• Why have I never received Form 1095 before?

• What is the difference between Form 1095-A, 1095-B and 1095-C?

• I’m not covered under my employer’s health plan. Why did I receive Form 1095-C from my employer?

• When will I get my Form 1095-C from my employer?

• Why did some of my co-workers get a Form 1095-C, but not me?

• Why do I have to report my healthcare coverage to the IRS?

• What do I need to do with Form 1095-C, 1095-B or 1095-A?

• Will the IRS fine me if I did not receive a Form 1095-C from my employer?

• Can I claim a healthcare coverage exemption for me and/or my dependents and avoid Form 1095 altogether?

• Will Form 1095-C information impact my taxes?

• What if I don’t work for my employer anymore or if I changed jobs?

• What happens if I did not have health coverage for a certain month during the year?

• What do all of the codes, fields and sections mean on Form 1095-C?

To learn more about Form 1095 and complete reporting requirements mandated by federal law under the Affordable Care Act, please also refer to:

• IRS – Provided Information: Form 1095-A; Form 1095-B; and Form 1095-C

• gov – Provided Information

Video and Video Postcard Explainer Overview Options to Educate and Engage Employees

Flimp Communications is offering a complimentary Form 1095-C explainer video to employers and benefits brokers to explain the new AND mandatory ACA, Form 1095 IRS tax-reporting requirements for employees and employers. Information and access to the Form 1095-C video can be found here.

We also provide the option to use a custom-branded, video-postcard communication that includes the overview video with your logo, link to the comprehensive FAQ PDF, and other branding for your organization. Video postcards can be sent via email and/or embedded into websites and intranet portals and include unlimited video hosting and viewing and reporting for better employee education and engagement. Flimp Media CEO, Wayne Wall, states, “We specialize in creating affordable employee communications video content and digital solutions for employers and benefits consultants. For employee benefits, our video postcard email campaigns generate over 75 percent engagement rates. The 1095-C video and video postcards are an easy-to-implement solution for employers to address the many questions and concerns that employees will undoubtedly have about the new IRS 1095 forms and reporting requirements.”

HR, benefits and employee communications are important to get right. And getting it right can be accomplished cost effectively. Our benefits communications programs increase employee engagement, help employees and their families learn about benefits options, deepen the relationships between employers and employees, and save organizations time and thousands of dollars over expensive employee communications platforms and video providers. Give us a call and let’s brainstorm together on the communications solution that works best for your organization.

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