What is ACA Form 1095-B?

This article further explores the following points:

  • What is the Purpose of the
    Form 1095-B?
  • Who must file Form 1095-B?
  • What is the deadline to file
    Form 1095-B

What is ACA Form 1095-B? - An Overview

- Updated september 14, 2020 - 8.00 AM - Admin, ACAwise

This instruction would help employers to know about Form 1095-B Filing Requirements.

When the Affordable Care Act was passed, the IRS updated their Internal Revenue Code to include Sections 6055. Sections 6055 of the IRC outline the protocol for reporting ACA compliance and offers of coverage
to the IRS.

What is the Purpose of the Form

The Form 1095-B was created by the IRS to report information on individuals who are covered by minimum essential coverage or MEC. This form provides proof that an individual was covered by the required level of coverage under the ACA. This was especially important when the individual mandate was in place and individuals without health insurance were subject
to penalties.

Who must file Form 1095-B?

The Form 1095-B is filed and distributed by private employers who offer their own self-funded health insurance coverage as opposed to a group health plan handled by a third-party provider. The Form is also filed by government employers, government-sponsored health insurance programs, and health
insurance providers.

What is the deadline to file Form

The deadline to file Form 1095-B with the IRS is generally due on February 28th if you are paper filing your forms with the IRS. If you are planning to file electronically, the deadline is usually March 31st. If you are submitting over 250 returns to the IRS, you are required to file electronically.

Filers must distribute copies of Form 1095-B to their recipients by January 31. These forms can be distributed electronically with the consent of the recipients.

It is important to note that if your business is filing more than 250 returns, you are required to file electronically by the IRS.

What information required to file Form 1095-B?

There are essentially 4 sections of this form that must be completed.

Part I

This section of the form records the individual’s personal information, including legal name, SSN/TIN, DOB, and legal address. This portion of the form also identifies the source of the individual’s health insurance coverage such as an employer-sponsored plan, a government sponsored plan, or a plan purchased on the
Healthcare Marketplace.

Part II

This portion of the form includes information from the carrier of the individual's health insurance coverage. This information includes the businesses’ legal name, address, and EIN.

Part III

This portion is for all other providers of health insurance coverage including employers who sponsored a self-funded employee plan or a government agency sponsored health
insurance plan.

Part IV

This section is dedicated to reporting any other individuals that are covered by the individual’s health insurance coverage such as spouses and dependents. This section provides personal information on every member coerced by this insurance plan including their legal name, DOB, SSN/TIN, and the length of time that the individual was covered during the tax year.

What are the penalties associated with Form 1095-B?

According to the IRS penalties for failure to file Form 1095-B for the tax year 2019 are
as follows:

The penalty for failure to file an accurate return can be as expensive as $270 per return, not
exceeding $3,339,000.

Click here to learn more about ACA Form 1095-B Penalties.

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