The Internal Revenue Service (IRS) has released Notice 2018-94, extending the deadline for providing 2018 1095-B forms and 1095-C to individuals from January 31, 2019 to March 4, 2019 They have also issued penalty relief for good-faith reporting errors.
Any Applicable large employer with at least 50 full- time workers or full time equivalents are require to send out a 1095-C forms.
The form identifies:
- The employee and the employer.
- Which months during the year the employee was eligible for coverage.
- The cost of the cheapest monthly premium the employee could have paid under the plan.
The 1095-B form, provides details about an employee’s actual insurance coverage, including who in the worker’s family was covered. This form is sent out by the insurance provider rather than the employer.
- However, some companies are “self-insured,” meaning that they pay their workers’ medical bills themselves, rather than paying premiums to an insurance company.
In the case of self-insured employers, the employer is also the insurance provider, so it will also send out 1095-B forms.
ALE’s that don’t offer coverage may be subject to financial penalties. Sending out 1095-C forms became mandatory starting with the 2015 tax year. Employers send the forms not only to their eligible employees but also to the IRS. Employees are supposed to receive them by the end of January, so forms for 2018 would be sent in January 2019.
Extension of Good-Faith Relief
As with calendar years 2015 – 2017 reporting, the IRS will not place penalties on employers that can show that they made good-faith efforts to comply with the requirements for calendar year 2018.