Your Restaurant’s 1095s are due to the IRS soon…but what does that mean?

Ed JobBusiness Operations, Restaurant, Small Business FinancingLeave a Comment

A couple looking at documents to try to manage their debt.

1095 forms are due to the IRS in the coming weeks, but going through the tax process can be confusing for any business or restaurant owner. Here is some helpful information regarding a new reporting process regarding your employees’ health insurance in 2015.

Deadlines are quickly approaching to file new forms with the IRS under the new health care law. If you employed an average of 50 or more full-time employees in 2015, or if you offered a self-funded health insurance plan, Forms 1095-B (Health Coverage) and Forms 1095-C (Employer-Provided Health Insurance Offer and Coverage) must be submitted in the coming month. Late last year, the IRS extended the filing deadlines to May 31 for covered businesses that file paper returns, and June 30 for employees who file electronically; groups that file 250 or more returns must be filed electronically.

But what does all of this mean? Navigating the world of the IRS can become incredibly confusing especially while still piecing together the changes that arose from the Affordable Care Act. The National Restaurant Association explained 1095 forms as “aimed at helping the government enforce the Affordable Care Act’s employer and individual mandates…the forms also help determine which individuals may qualify for federal tax help to buy health insurance through government-run exchanges.” 1095 forms collect information required under the tax code regarding who was enrolled in health coverage, for what month, and that businesses that employ 50 or more full-time-equivalent employees to certify whether they offered minimum essential coverage (MEC). New mandates regarding 1095 forms also require reporting to employees about information given to the IRS for employers who offer MEC during a calendar year.

What is the difference between Form 1095-B and 1095-C?

  • Self-funded employers with fewer than 50 full-time-equivalent employees in 2015 use the Form 1095-B to report their offer of MEC to the IRS.
  • Form 1095-C must be filed with the IRS by employers with 50 or more full-time-equivalent employees.

Because this is the first year the reporting rules take effect, the IRS will consider “good-faith-efforts” in assessing compliance. They understand that there will likely be errors in reporting, but “good-faith-efforts” give some leeway to restaurant owners. But because most restaurant owners are not tax experts, hiring an accountant or tax advisor to walk you through the process will help avoid potential problems. The deadlines are quickly approaching, and if you need help quickly but lack access to cash, consider a capital advance; with quick approval decisions, you can hire the tax professional you need to achieve the looming deadline.


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