What’s the Difference Between Form 1094-C and 1094-B?

Just when you thought filing taxes was complicated, a new set of forms have been presented that can be utterly bewildering. Yet, comprehending the disparities between them will make your tax crunch much more manageable. These particular documents are associated with health coverage and must be reported on accordingly if you’re an employer or provider of  necessary minimum  coverage; this is non-negotiable!

Form 1094-B is a cover form which accompanies the 1095 Series Forms filed with the IRS. The 1094-C is used for specific information reporting by employers subject to the employer mandate under the Affordable Care Act (ACA).

This blog post will learn more about form 1094 b and take a closer look at what both forms include and how one should use them during tax season.

Is Form 1094 B and 1094 C Similar?

It’s important to note that even though Form 1094-B and Form 1094-C have similar names, the forms are distinct. Some of their differences include the following:

• Form 1094-C is used by employers subject to the Affordable Care Act (ACA), while the 1094-B is typically filed by health insurance providers or other organizations that provide minimum essential coverage.
• Form 1094-B is designed to communicate crucial information about a single employee’s coverage, while Form 1095-C was created for employees of companies that don’t offer group insurance.
• Form 1094-C is more in-depth than Form 1094-B. While both forms are used to report employee coverage information under the ACA. Form 1094-C includes additional details about the coverage offered and completed by your client’s employees.

What Makes Form 1094 C More Detailed?

Unlike the form 1094 B that has few sections,  the 1094 C is divided into 4 sections that have many other subsections:

(ALE) Applicable Large Employer Member

One is an ALE member if they have a certain number of employees during the previous year. The  member is responsible for providing information about their employees’ coverage to the IRS and each employee.

This section is divided into 19 subsections with basic information about the filer, such as name and Employer Identification Number, company name and address, and contact information of the individual responsible for filing.

ALE Member Details

This section contains information regarding the employees of the ALE member, including their personal details.

ALE Membership Monthly Measurement and Stability Periods

This section contains information about the months covered by the ALE membership and their associated measurement and stability periods.

ALE Members of the Aggregated ALE Group

This section includes information about any employers that are part of an aggregated ALE group. It includes basic details such as the

• Employer name
• Employer Identification Number
• Contact information for the individual responsible for filing
• Summary of the coverage provided by all members in the group over a given tax year.

Who Fills these Forms?

Both forms must be completed by any person who is an employer and offer group health coverage, including:

• Self-insured employers.
• Churches, governments, and other tax-exempt organizations provide coverage to employees.

The difference between Form 1094-B and 1094-C can be confusing, but understanding their differences is essential for successfully filing your taxes during tax season. Whether you’re a health insurance provider or an employer subject to the ACA, it’s important to be aware of these forms’ details.