Bad habits are easy to form (1095c).
When the authorities that be (in this case the IRS) give us extensions or delay their own rules, we fall prey to our own human nature.
We form bad habits before we ever get a chance to form a good habit.
This is the case with the 1095 and 1094 reports.
As the Employer for 50 or more employees (or a group of commonly owned or commonly managed smaller employers who aggregate to total 50 employees), you are required to deliver each employee a 1095c form and file these same a reports to the IRS with the addition of a 1094c report containing overview information of how you reported and calculated your application of the “Pay or Play” law. Sometimes people refer to these reports as the “W2 for Health Insurance.” That’s a bit of a misnomer, but let’s only tackle one bad habit at a time.
As of today, there is no delay this year like last year.
You aren’t getting a 90-day reprieve to get your files and records in order.
You must deliver the 1095c to the employee no later than January 31st (no reprieve for this coming year–last year’s March 31st delay was a bad habit—don’t fall into the trap).
You must submit your IRS transmittal by Feb. 28th if in paper format, or by March 31st if e-filing. And let’s be honest: DON’T DO PAPER. Last year’s delay until June 30th was a unicorn – a trap, a bad habit. Don’t fool yourself. We are only 5 months away as we are now in October 2016.
What must you do to turn the tide, form a good habit?
Save the Date: December 2nd.
You have almost everything you need.
On December 2nd, you’ve made your last offer of coverage for 2016. You have almost a full 12 months of Full Time employee records. Heck, maybe you will even have a full 12 months of Full Time Employee records if you don’t hire anyone in the last month.
Put it all together on December 2nd. Don’t let the Year-End trauma of work and the post New-Year’s memory loss get in your way!
Form a good habit – now.
Match your Full Time records to your Offer of Coverage to the details of affordability on December 2nd. Revisit your work on January 5th and drop any any new-hires between December 2nd and December 31st. Those are easy for those December hires. All you will need is just their SSN and name, and you code them as serving in a waiting period.
Boom, You’re done.
You’ve completed the task the 1st week of January. Your 1095 forms will be in employee’s hands ahead of schedule.
Since you have all the data on hand, push the e-file button and transmit the 1094 report to the IRS in January and beat the March 31st rush.
Curious how to match the Employment Records, Payroll Records, Variable Hour employee tracking, form 1095c generation, and eFiling to the IRS all in one simple easy to use and understandable package that doesn’t require a full day of your work?
Curious how we do this on your behalf and only need you to proof the data once we serve it up on a silver platter?
Curious to learn what we learned during the 2015 filings that we painlessly completed for our clients?
Let’s talk. Let’s form good habits together. Let’s get on track for a successful future.
JC Cole, Jr.
About the author: JC joined the AG team back in 1992 and has a robust experience working with large employers, financial professionals and business entrepreneurs. He leans on the experience of his own OCD personality to highlight ways to bring order and harmony to our organization and to the businesses of our clients by focusing on simple and highly effective ways to operate smart, on time and ahead of schedule. He just wouldn't have it any other way!
About AG Insurance: AG Insurance (www.agiainc.com) helps employers and their employees with solutions focused on positive organizational impact and improved employee experiences.