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2021 ACA Reporting is Due in Early 2022

The IRS has released draft 2021 versions of Forms 1094-C1095-C1094-B and 1095-B that employers will use in early 2022 to report under Internal Revenue Code Sections 6055 and 6056 for the 2021 calendar year.

By filing Forms 1095-C with the IRS and providing employees with copies, employers with 50 or more full-time or equivalent employees, known as applicable large employers (ALEs), show they offered eligible employees health coverage that was compliant with the ACA.

ALEs are required to provide full-time workers with minimum essential coverage that meets affordability and minimum value thresholds or face penalties for failing to do so. Smaller employers are not required to provide healthcare coverage, but if they choose to do so, then the coverage must meet ACA criteria.

The IRS has not yet released draft instructions related to these forms for the 2021 calendar year.

It should be noted that no substantive changes were made to the draft forms for 2021 reporting. These forms are relatively identical to the final 2020 versions. However, certain changes may be made once these forms are finalized, or when draft or final instructions are released.

HR Works will continue to monitor this topic and provide updates as new information becomes available.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.