The IRS recently released the 2021 final version of Form 1095-B. As background, Form 1095-B is used by self-insured small employers (fewer than 50 full-time employees, including equivalents) to report covered individuals to the IRS to satisfy Section 6055 reporting as required by the ACA. A large, self-insured employer may also use the forms to report coverage for a non-employee (such as a retiree or COBRA participant), though most large employers use Form 1095-C for this purpose.
The forms must be filed with the IRS by February 28, 2022, if filing by paper and March 31, 2022, if filing electronically. Additionally, the completed form must be distributed to covered individuals by January 31, 2022. The penalties for failure to file and report are $280 per failure. This means that an employer who fails to file a completed form with the IRS and distribute a form to a covered individual would be at risk for a $560 penalty per individual.
For reporting years 2019 and 2020, the IRS granted relief for distributing Form 1095-B to covered individuals. Self-insured employers were not required to automatically provide the form as long as (1) a Form 1095-B was furnished within 30 days after an individual’s request is received; and (2) a notice with information about requesting Form 1095-B was prominently posted on the reporting entity’s website. Such relief has not yet been granted for 2021.
The 2021 form is unchanged from the 2020 version.
As always, self-insured employers should work with reporting vendors to comply with the ACA reporting requirements.
2021 Form 1095-B »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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