ACA Reporting - 2016 IRS Draft Forms & Instructions Released

In late July, the IRS released new draft 2016 Forms 1094-B and 1095-B (the "B-Series" Forms) and Forms 1094-C and 1095-C (the "C-Series" Forms).

Additionally, the 2016 Draft Instructions for Forms 1094-C and 1095-C were recently released to help employers prepare for calendar year 2016 information reporting (draft instructions for the B-Series Forms have not yet been released).

Affected entities are required to report in early 2017 for calendar year 2016.

Who Must Report

  • Providers of "minimum essential coverage" (IRC § 6055): Health insurance issuers and sponsors of self-insured group health plans report on enrollment using "B-Series" Forms. Note: NYSHIP is considered a self-insured group health plan.
  • Applicable Large Employers (IRC § 6056): Employers with 50 or more full-time employees, taking into account part-time employee hours, use the "C-Series" Forms to report on their compliance with the employer shared responsibility provisions ("pay or play") and the health care coverage they have offered.

Clarification & Key Changes for 2016 Reporting
Among other changes, the 2016 draft instructions for forms 1094-C & 1095-C clarify:

  • That each separate entity/member of an "Aggregated ALE Group" (determined based on employer identification number) is required to file its own Forms 1094-C and 1095-C, even if the ALE Member has fewer than 50 full-time employees of its own;
  • The forms of transition relief that are no longer applicable;
  • How to determine the Monthly Cost to an Employee (Line 15 of Form 1095-C);
  • The indicator codes that should be used to report offers of COBRA continuation coverage on lines 14 and 16 of Form 1095-C; and
  • The definitions of "full-time employee" for purposes of 1094-C/1095-C reporting.


If you have any questions or comments regarding this ACA update please contact Danielle at dotoole@marshallsterling.com.