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ACA Forms Breakdown

09/22/23

Author: TJaeger2/Friday, September 22, 2023/Categories: Uncategorized

Don't Fear 
the Forms

The IRS requires employers to
file two forms annually:
Forms 1094-C and 1095-C 
 
 ADP TotalSource completes and files Forms 1094-C and 1095-C to the IRS and distributes Form 1095-C to your full-time employees on your behalf*




What is Form 1094-C?

After TotalSource mails the Form 1095-C to full-time employees in January, TotalSource electronically transmits a copy of each Form 1095-C to the IRS along with the Form 1094-C.

The Form 1094-C includes certain employer information such as address, phone number, employer identification number, number of employees, name of a contact person, and the number of Forms 1095-C issued. It is not distributed to your employees and is only filed with the IRS. The Form 1094-C will be created for you through the ACA Reporting Tool.


What is Form 1095-C?

If you employed on average at least 50 full-time employees (including full-time equivalent employees) in 2022, you are considered an Applicable Large Employer (ALE) according to the Affordable Care Act (ACA). You will need to report information to the IRS about the health care coverage offered to your full-time employees using Form 1094-C and Form 1095-C. ADP TotalSource will issue the Forms 1095-C to your full-time employees, which may contain information they need to report as part of their 2023 personal income tax filing.

The IRS has indicated that it will use the information it receives from the Form 1095-Cs to administer the Employer Shared Responsibility penalty provisions. The Form 1095-C also helps the IRS administer premium tax credits for any individual who enrolled for coverage at a Health Insurance Marketplace rather than enrolling in his or her employer’s plan.



*If you started with TotalSource after 1/1/2023, our ACA experts will contact you to gather your pre-TotalSource 2023 information so we can complete your forms.


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