1095-C FAQ: What employees want to know
It’s tax season again, which means a lot of paperwork, number crunching, and confusion.
For the second year, this includes the reporting employers submit about their health care plans, beginning with the distribution of the ever-confusing 1095-C. While employers have their own set of questions regarding the 1095-C, employees may not understand what their role is when it comes to reporting.
Here are some common questions that employees may ask about handling the 1095-C and how you can answer them.
1. What is a 1095-C form?
The 1095-C is the form distributed to certain employees and shared with the IRS that shows whether and when an employer provided or offered health care insurance at an affordable rate. It’s how the government keeps track of who’s following the rules set by the Affordable Care Act.
2. Am I supposed to get a 1095-C?
All ACA full-time employees (those who average 30 hours of service a week) working for an applicable large employer should get a 1095-C, regardless of whether or not they were enrolled in employer sponsored health care. Even if you were only ACA full-time for a single month, you should still receive a form.
As a part-time employee, you’ll only receive the 1095-C form if you were offered and enrolled in employer sponsors self-funded health care plan. While coverage for part-time employees is not mandatory under the ACA, if you’re on company self-funded health care plan, you should receive a 1095-C.
If your spouse or dependents are covered by the employer sponsored plan, they will not get a 1095-C.
3. When am I supposed to get my 1095-C?
Employers are required to distribute the forms by March 2 this year, pushed back from the original Jan. 31 deadline. If an employee does not receive the form but believes they should get one, they should contact their employer.
4. Do I have to wait for my 1095-C before filing my taxes?
No. Your 1095-C is not needed to fill out the rest of your tax returns, so go ahead and file as you usually would!
5. So then what do I do with this?
In most cases, not much. Check it for simple mistakes (such as name, address, and social security number), find out if you qualify for a subsidy (if on company health care, this will probably not be the case, since the company could incur fines), and file it away in the same way you would your other tax forms.
6. What should I do if I notice a mistake?
Call the contact number issued on the form. They should be able to walk you through what to do if you notice any errors on your 1095-C.
7. I also got a 1095-B. Is that right?
Yes—that just means your company is fully insured, rather than self funded. In this case, one of the forms (the -C) is from your employer, and the other is from your insurance company. They should be giving you the same information from slightly different perspectives. If you work for a self-funded companies, you should only receive the 1095-C.
ACA reporting isn’t a simple business—it’s confusing, and, more importantly, it’s new. Employers and employees alike are sure to have questions as the season progresses. Make sure to find the answers you need before 2016 reporting comes to an end.