Do preparing 1095s have your head spinning? Repeat after me: “The 1095 is the first step.” The 1094 is more complex and laden with variables that can trip you up. For now, let’s set that aside. We need to start with step one.
Here’s what you need to start 1095s:
Who among your employees was offered a health plan by you as the employer? Did they accept it? How many months were they enrolled? If you’re inclined to gather additional information, you’ll need it later: For the months they weren’t offered or weren’t enrolled, were they ineligible due to full-time status, employment class, or serving in a new hire or variable hour measurement period? I’ll revisit that last point if you have uncertainties about tracking employees working over or under 130 hours per month or ambiguous job descriptions.
Where to begin on 1095s:
You’ll need a list of your full-time employees. Quickbooks, payroll vendors, or any software you use, including Excel or your manual ledger, is a good starting point. If you don’t have those readily available, here’s some good news: someone just processed your W2s last week, and that data list hasn’t been deleted yet. Alternatively, one-up me and claim you’ve been diligently tracking this all year, with the list ready to go. Bravo! Now, ensure you put those new cover sheets on your TPS reports and avoid outshining your peers. Your celebratory poolside drinks on March 31st will be a sweet reward that us common folks won’t partake in.
Failed to keep records of who enrolled? Perhaps you were a tad thrifty and didn’t offer 100% employer coverage for your health plan? In that case, your payroll deduction history should serve as a guide. If not, those invoices you marked as paid and filed away will be your compass. If you have fewer than 100 employees, your insurance vendor may prioritize other clients, so it’s time to take matters into your own hands.
Focus on one task at a time. The only other essential details you need are your company’s identifying information and that of your insurance provider, unless you self-insure. In that case, you’ll enter your company info twice, once as the employer sponsor and once as the coverage provider.
Alternatively, if you’re interested in software that tracks this year-round, we offer Benefits Administration technology and Integrated Benefits/Payroll Technologies.
In closing, don’t wait until March 31st. Get these tasks done now to check them off your to-do list swiftly and restore clarity to your work.
Double-check with these resources:
