Affordable Care Act Compliance Forms Part I: The Individual
Jan 19, 2016
The Affordable Care Act (ACA) continues to raise compliance concerns for many businesses and individuals alike. The IRS recently introduced new tax forms for individuals, employers and health insurance providers to determine if shared responsibility payments are necessary. Such payments are penalty fee for those who failed to obtained health insurance as instructed by ACA legislation. If you do not have health insurance, or were subject to a cap in your coverage, you may have to individual responsibility payments.
Form 1095-A This form should be provided to the individual who is participating in the health care marketplace (often called Exchanges). They will from from the insurance company providing coverage. The 1095-A form is a health insurance marketplace statement and should be used to complete your income tax filing. It may also be used to claim premium tax credits or adjust any payments which may be due.
Form 1095-B This form will be sent to covered individuals and dependents by the insurance company providing coverage through an employer-sponsored plan. In the case of an employer partially or self-funded plan, this form must also be sent to the employees of the employer. Form 1095-B is used to verify your compliance with minimum essential coverage (MEC).
Form 1095-C This form is used by employers with more than 50 full-time employees or full-time equivalent to prove coverage was offer to you by your employer in 2015. The form will outline the coverage offered by your employer and whether or not you chose to participate. This form can also be used to complete your tax return. If you receive any of the above forms and have questions or concerns about the content or methods for filing your tax return, please call your William Vaughan Company representative.
Categories: Healthcare & Dentistry