The Glossary For Employer’s Shared Responsibility Forms

The Glossary For Employer’s Shared Responsibility Forms

EMPLOYER’S SHARED RESPONSIBILITY & FORMSYour Guide To Forms 1094-C and 1095-C

It is important that your business knows that in order to comply with the new regulations set forth by the Affordable Care Act (ACA), you and your health insurance provider are required to report specific information for 2015. Although you will not be asked for this information until January 2016, beginning to understand the terminology now will be helpful. Here is a brief guide to some of the verbiage you will need to know when filling out IRS Forms 1094-C and 1095-C.

  • Applicable Large Employer: This type of employer is defined as one who has at least fifty full-time or full-time equivalent employees. Note that in this case, full-time is defined as 30 hours a week or more. Applicable large employers will be required to submit IRS Forms 1094-C and 1095-C.
  • Affordable Coverage: Coverage is determined to be affordable if the employee’s contribution for self-only coverage is 9.5 percent or less of the household income of that employee. There are some instances where W-2 income could be accepted in place of household income.
  • Hour Of Service: Each hour of service is defined as either an hour during which the employee is paid for job duties, or is paid or entitled to payment for a time during which he or she did not work (e.g. paid time off, disability, layoff, jury duty).
  • Minimum Essential Coverage: A plan that pays for 60 percent or more of the covered health care expenses of that employee must meet minimum essential coverage requirements.

You do not have to go through the process of filling out this paperwork alone. Contact Employee Benefit Plans Inc. in Greenwood Village, CO to work with an expert team that can offer you professional guidance.