Form 1095-B vs 1095-C: An Overview
When it comes to health insurance reporting under the Affordable Care Act (ACA), two important forms come into play: Form 1095-B and Form 1095-C. While both forms report information about individuals' health coverage, they serve distinct purposes and are issued by different entities.
Understanding the difference between these forms is crucial for both employers and employees to ensure full compliance with ACA regulations. This guide breaks down the key distinctions between Form 1095-B and Form 1095-C, helping you navigate the reporting process with confidence and accuracy.
Table of Content:
What is Form 1095-B?
1095-B Form, known as “Health Coverage,” is an IRS form used by small employers or insurance coverage providers to report the health coverage made available to employees or individuals. File Form 1095-B with the IRS, and copies must be distributed to the respective individuals.
What is Form 1095-C?
1095-C Form (Employer-Provided Health Insurance Offer and Coverage) is an IRS form that must be filed by Applicable Large Employers (ALEs)—employers with 50 or more full-time equivalent employees. This form provides detailed information about the health insurance coverage offered to full-time employees.
ALEs are required to file Form 1095-C for each full-time employee, reporting coverage for every month of the year, regardless of whether the employee was full-time for the entire year. If the employee was full-time for only part of the year, the form must still include coverage information for the months the employee was considered full-time.
Form 1095-B vs 1095-C: Key Differences
Forms 1095-B and 1095-C are quite similar, sharing the same filing deadline, penalty rates, and extension form. However, there are key differences between these two ACA forms that you need to be aware of, depending on the type of provider and the employer's size. The table below highlights these subtle yet important distinctions to help ensure compliance.
| Aspect | Form 1095-B | Form 1095-C |
|---|---|---|
| Purpose | Reports details of minimum essential coverage (MEC) provided to individuals. | Reports health insurance coverage offered by Applicable Large Employers (ALEs) to full-time employees to ensure compliance with ACA employer mandate. |
| Who Files? | Health insurance providers, small self-insured employers, and government programs (Medicaid, Medicare, CHIP). | Applicable Large Employers (ALEs) with 50 or more full-time employees. |
| Recipient | Individuals covered under the health plan | Full-time employees of ALEs |
| Transmittal Form | Filed with Form 1094-B-Transmittal of Health Coverage Information Returns | Filed with Form 1094-C- Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns |
Get Started with TaxBandits to File Form 1095-B/C
TaxBandits, an IRS-authorized e-file service provider, offers secure and efficient e-filing for Form 1095-B and Form 1095-C. Here’s why e-filing your 1095-B and 1095-C with TaxBandits is the smart choice:
- Effortless Bulk Upload: Quickly import all your ACA Form 1095-B/C data using our intuitive bulk upload template.
- Error-Free Filing: Our built-in audit checks automatically identify common errors, giving you peace of mind and ensuring accurate filings.
- Address Validation: We verify employee addresses through USPS records, ensuring that employee copies reach the right destination.
- Multiple Distribution Options: Choose between USPS mailing for employee copies or providing access via our secure online portal for greater flexibility.
- Automated Transmittal: We’ll generate your required transmittal Form 1094-B/C for a seamless filing experience.
- Stay Informed: Receive email updates on the status of your return so you're always in the loop.
- State Filing Support: We also support ACA filings with states that require it, ensuring you're fully compliant.
Get started with TaxBandits today for a stress-free, secure, and efficient e-filing experience!
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