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How to Manage QuickBooks Payroll 1095-C Forms

· 4 min read
Debits

Introduction​

The 1095-C form is a crucial document for employers to provide to their employees, detailing the health insurance coverage offered throughout the year. QuickBooks simplifies the process of managing and filing 1095-C forms, ensuring compliance with the Affordable Care Act (ACA). This guide provides a step-by-step process to manage QuickBooks Payroll 1095-C forms efficiently.

Understanding Form 1095-C​

Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is required for:

  • Applicable Large Employers (ALEs): Employers with 50 or more full-time employees.
  • Employer Mandate Compliance: Ensuring that employers meet ACA requirements.

The form provides information about the health coverage offered to employees, including:

  • Employee and Employer Details: Personal and business information.
  • Coverage Information: Details about the health coverage provided.
  • Offer of Coverage: Information on the type of coverage offered to each employee.

Steps to Manage 1095-C Forms in QuickBooks​

Step 1: Set Up Health Coverage Information​

  1. Open QuickBooks Desktop: Launch QuickBooks and log in with your credentials.
  2. Go to Payroll Settings: Select Employees > Payroll Center > Payroll Setup.
  3. Add Health Coverage: Navigate to the health benefits section and enter details about the health coverage offered to employees, including coverage start and end dates, type of coverage, and any associated costs.

Step 2: Generate 1095-C Forms​

  1. Open Employee Center: Go to Employees > Employee Center.
  2. Select Employees: Choose the employees for whom you need to generate 1095-C forms.
  3. Create Form: Click on File Forms > Create Form 1095-C.
  4. Review Information: Ensure all employee and coverage information is accurate. QuickBooks will use the health coverage details entered during setup to populate the form.
  5. Save and Print: Save the forms and print them for distribution to employees.

Step 3: File 1095-C Forms with the IRS​

  1. Electronic Filing: QuickBooks supports electronic filing of 1095-C forms. Go to Employees > Payroll Center > File Forms.
  2. Select 1095-C Forms: Choose the 1095-C forms you generated.
  3. Submit Forms: Follow the prompts to submit the forms electronically to the IRS. Ensure you have a valid IRS Transmitter Control Code (TCC) for e-filing.

Step 4: Distribute 1095-C Forms to Employees​

  1. Print Forms: Print copies of the 1095-C forms for your employees.
  2. Distribute Forms: Distribute the printed forms to employees by the IRS deadline, typically by January 31st of each year.

Additional Tips for Managing 1095-C Forms​

  • Regular Updates: Keep your QuickBooks software updated to the latest version to ensure compliance with the latest IRS regulations.
  • Accurate Data Entry: Ensure that all employee information and health coverage details are entered accurately in QuickBooks.
  • Consult with a Professional: If you are unsure about any aspect of the 1095-C form or ACA compliance, consult with a tax professional or accountant.

Common Issues and Troubleshooting​

Missing or Incorrect Information​

  • Verify Employee Details: Ensure all required employee information, such as Social Security numbers and addresses, is correctly entered.
  • Check Coverage Dates: Confirm that the health coverage start and end dates are accurate and within the required reporting period.

Filing Errors​

  • Validate TCC: Ensure you have a valid IRS Transmitter Control Code (TCC) before attempting to e-file.
  • Check Internet Connection: A stable internet connection is necessary for successful electronic filing.

Conclusion​

Managing 1095-C forms in QuickBooks is a streamlined process that helps ensure compliance with ACA requirements. By following the steps outlined in this guide, you can efficiently generate, file, and distribute 1095-C forms. Regular updates, accurate data entry, and consultation with professionals will help maintain compliance and avoid potential penalties.