IRS Extends 2018 Deadline for 1095c Forms

Authors, Shane Medlin, Employee Benefits Account Executive, Rancho Mesa Insurance Services, Inc.

1095-c Form and pen.

The Internal Revenue Service (IRS) released Notice 2018-94 outlining extended deadlines for 2018 Minimum Essential Coverage under Section 6055 and Large Employer Shared Responsibility under Section 6056. This notice extends the due date to provide individuals the 2018 Form 1095-B, Health Coverage, and the 2018 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2019, to March 4, 2019. This notice also extends good faith transition relief from section 6721 and 6722 penalties to the 2018 information reporting requirements under sections 6055 and 6056.

The deadline remains February 28, 2019, for employers filing by paper with less than 250 1095c forms. Employers that file 250 or more forms must file the returns electronically.

Applicable Large Employers (ALE) (employers with 50 or more full-time and full-time equivalent employees on average during the prior year) must report to the IRS information about the health care coverage they offered to full-time employees (i.e., employees working at least 30 hours a week or 130 hours per month). The IRS uses this information to administer the employer shared responsibility provisions and the premium tax credit.

Self-insured employers must report information about employees (and their spouse and  dependents) who enroll in coverage by using Form 1095-C and Form 1094-C to meet their reporting requirements.

Employers who are not ALEs but who sponsor self-insured group health plans must report information about employees (and their spouse and dependents) who enroll in the coverage to their employees, even though the employers are not subject to the employer shared responsibility provisions or the information reporting requirements for ALEs. They will be required to use Form 1095-B and Form 1094-B, to meet the information reporting requirements for providers of minimum essential coverage.

Employees should file their forms with their tax records upon receipt because they will not be required to go back and amend their income tax returns if they file their 2018 federal income tax returns before receiving their 1095-B and 1095-C forms.

For questions about this and other employee benefits topics, contact Rancho Mesa at (619) 937-0164.