1094 and 1095 REPORTING

Large Employer Reporting – Employer Mandate

Those employers who come under employer mandate are needed to submit the report to the IRS of the coverage offered to their workforce and their dependencies. An employer with the employee strength more than 50 comes under the category of the employer mandate and he has to report annually to the IRS about the different coverage provided. This large employer reporting is given on IRS form 1095.

Large employer reporting data to report

In the case of IRS form 1095-C reporting, an employer has to provide following information:

·         Contact information including employer’s name and phone number and Employer Identification Number (EIN)

·         Information of reported year

o   Employer has to submit the certificate saying that full-time employees and their dependents were offered a chance to get enrolled in the Minimum Essential Coverage (MEC) by calendar month

·         Information about the MEC provided to each full-time employee for the months

·         A minimum value plan offered by the employer to each full-time employee. It covers the share of the cost of coverage under the lowest-cost.

·         The number of full-time employees for every month during one financial year.

·         Information about each full-time employee along with his months of coverage. The information of full-time employee comprises of Name, address and Social Security Number (SSN).

·         An additional form that is 1094-C must be also submitted with the 1095-C when filing the report to the IRS.

Penalties of Large Employer Reporting

An employer who does not submit an annual IRS return or fails to provide an individual statement of all full-time employees may have to pay a penalty up to $250 per return and the maximum limit of the penalty may go to $3 million. Waivers are only available when the employer has a reasonable cause for not submitting 1094 and 1095 reporting to the IRS.

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