Calculating the 1095-C Lines 14-16 codes is one of the more daunting tasks of ACA reporting. For 2015 tax reporting, many employers found themselves relying on their “best guesses” to correctly determine and complete their 1095-C Part II codes. Each Part II Code combination weaves a story throughout the year for each recipient to allow the IRS to determine whether your company was compliant or not with regards to the Employer Mandate. There are several 1095-C “Safe” Code Combinations and several 1095-C “Risky” Code Combinations.
Many factors could trigger inquiries from the IRS, but our hope here is to empower you with the information necessary to properly calculate and audit your 1095-C forms.
UnifyHR has created a Guide to provide an overview of IRS Form 1095-C and the required Part II Codes to empower you with the information necessary to properly generate and audit your submission data.
Form 1095-C Transitional Relief and Obligations
The distribution deadline for IRS Form 1095 for 2016 is quickly approaching. For many employers and organizations that are defined by the IRS as Applicable Large Employers (ALEs) this is not new, however the process can still be cumbersome.
The good news is that the IRS has issued transitional relief for the 2016 reporting year, extending the deadline to March 2nd, 2017. The IRS 1094 transmittal submission deadline remains March 31st, 2017. For more information, click here.
While the IRS extended some aspects of transition relief for “good faith effort”, the penalty for failing to file a correct return is on average $260 per form with the maximum penalty set to be $3.193 million for 2016, assuming there was no intentional or “willful” disregard of the filing requirement.
Whether you are an employer finalizing your 1095-C forms prior to the upcoming March 2nd deadline, or you are an advisor seeking more information, this Insider’s Guide to IRS FORM 1095-C Part II Code Combinations is for you.
- Review Form 1095-C and 2016 IRS Updates
- Overview of IRS Form 1095-C Part II codes
- Common 1095-C code combinations
- 1095-C Code combination scenarios
To download your copy of the Insider’s Guide to IRS Form 1095-C Part II Code Combinations – click here.
UnifyHR is a leader in cloud-based ACA compliance administration for medium to large-sized organizations. UnifyHR helps clients manage their workforce more effectively, driving strategic human capital decision-making and improving overall employee staffing and management capabilities. For more information, visit www.unifyhr.com/about-us
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