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ALE Form 1095 Question.


Lee B

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My largest client has 42 or 43 full time employees, but the FTE rules push them up to 54 or 55 FTE employees.

While they are a solid profitable business, the cost of providing health insurance to their employees exceeds their Profit,

so they have decided to not to provide insurance and let their employees go to the marketplace. The penalties they will have to pay

are far less than the projected cost of providing health insurance.

 

1.  What I am unclear about is, are they still required to file Form 1095 even though they are providing no health insurance ?

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Here is a PDF copy of an article from Accounting Today that speaks to your question.

My understanding (which of course could be incorrect) is that the employers WILL HAVE TO arrange for 1095's of some sort (B,C, etc.) as long as they fall under the mandate of the proper number of employees. Even for 2015 where the mandate has been extended, the 1095's appear to need filing in 2016 (again, even though the mandate did not apply in 2015 but the filing requirement does in 2016 (not for 2016 info but for 2015)  - confusing is it not?).

www.accountingtodayACA Coming Around Again 122715.pdf

 Hope this helps.

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