HR software

How To Complete and File Forms 1094-B

When informing the Internal Revenue Service (IRS) of a person’s possession of Affordable Care Act-compliant health coverage, insurance companies use Form 1094-B, a cover sheet. The 1094-B is a brief form that fits on just one page. Learn more here:

Who Should File?

If you meet specific requirements and offer health insurance to current or former employees, you must submit Forms 1094-B and 1095-B. Businesses that don’t qualify as “applicable large employers” aren’t required to report for 2016. However, beginning of 2017, all companies will be required to register their coverage offerings to avoid penalties from the IRS.

The following documents are required to complete Form 1094-B:

  • A list of all employees eligible for coverage
  • An explanation of how premiums were calculated for each employee every month
  • A list of all employees who were eligible for coverage but did not enroll in any plan. The lists also include those who enrolled in a program but discontinued their coverage before January 1.

Filling Information

Form 1094-B is typically filed by insurance companies. An employer may occasionally submit the form. In either case, those with the minimum necessary coverage should get their 1095-B by the end of January.

If submitting paper forms, insurance providers must send them to the IRS by the end of February; if submitting electronically, they must do so by the end of March. Any sender of 250 or more 1095-B forms must submit their paperwork electronically.

Keep in mind that with Boom Tax, we’ll help you complete all the necessary tax forms and ask you straightforward questions about your life. No matter your circumstances, you can be sure that Boom Tax will handle your taxes correctly, whether they are clear or complex.

What’s Included on Form 1094-B?

The form includes a variety of information about the employer’s health insurance plan, including:

  • The number of full-time and part-time employees who were offered coverage during the year, as well as their family members.
  • The aggregate cost of employer contributions toward coverage for eligible employees who were offered it.
  • The aggregate cost of employer contributions toward coverage for eligible family members.
  • Any applicable shared responsibility fines paid by an employer for failing to provide its full-time employees with affordable coverage.

Completing and Filling Forms 1094-B 

Employers are required by the Affordable Care Act (ACA) to submit Form 1095-B. Both forms do not need to be submitted to the IRS or included in employee W-2 forms if an employer has fewer than 250 full-time workers. However, those who do not submit may be subject to a $100 per return penalty per day if they fail to submit on time.

Forms 1095-B and 1094-B must be completed with the same reports submitted on Form W-2 in Box 12 using Code DD as reported on Form W-2. If you reported only one code in Box 12, then Code DD should be (EIN) and must match exactly as it appears on your 2015 Employer Identification Number (EIN) Letter from the IRS. If there is any discrepancy between what appears on the letter and what is entered

In Conclusion

The ACA Reporting requirements are a big deal for employers. Understanding what is required and how to ensure compliance with the law is essential. If you’re an employer, review all the ACA forms that apply to you and ensure your employees have completed them.