Form 1094-B: A Business Owners Perspective

As a business owner, it’s important to stay on top of your tax obligations. One form that you may need to file is Form 1094-B. This form is used to report information about the health insurance coverage you offer to your employees. Here’s everything you need to know about Form 1094-B.

What is Form 1094-B?

Form 1094-B is a transmittal form that is used to report information about the health insurance coverage you offer to your employees. If you are an applicable large employer (ALE), meaning you have 50 or more full-time employees or equivalent, you are required to file Form 1094-B along with Form 1095-B. Form 1095-B is used to report information about each employee’s health insurance coverage.

Call to action: Determine if you are an applicable large employer and will need to file Form 1094-B.

Who needs to file Form 1094-B?

As mentioned, if you are an applicable large employer, you are required to file Form 1094-B. However, even if you are not an ALE, you may still need to file Form 1094-B if you are a self-insured employer or if you provide health insurance coverage to your employees through a government-sponsored program.

Call to action: Review your health insurance coverage offerings to determine if you are required to file Form 1094-B.

What information do you need to report on Form 1094-B?

Form 1094-B requires you to report information about your business, including your name, address, and employer identification number (EIN). You will also need to provide information about the number of individuals covered under your health insurance plan and the months in which they were covered. You may also need to report additional information, such as whether the coverage offered meets minimum essential coverage requirements.

Call to action: Gather all the necessary information you will need to report on Form 1094-B, including your EIN and information about your health insurance coverage offerings.

When is Form 1094-B due?

Form 1094-B is typically due on February 28th if you are filing on paper or March 31st if you are filing electronically. However, the exact due date may vary depending on the year and any extensions that have been granted.

Call to action: Mark the due date for Form 1094-B on your calendar and aim to file by the deadline.

What are the penalties for not filing Form 1094-B?

Failing to file Form 1094-B can result in significant penalties. The penalty for each late or incomplete form can be as much as $280 per form, with a maximum penalty of $3,392,000 per year. These penalties can add up quickly, so it’s important to file on time and ensure that your forms are complete and accurate.

Call to action: Avoid costly penalties by filing Form 1094-B on time and ensuring that your forms are complete and accurate.

In conclusion, Form 1094-B is an important tax form that business owners may need to file if they offer health insurance coverage to their employees. By understanding who needs to file, what information is required, when the form is due, and the penalties for not filing, you can ensure that you stay on top of your tax obligations and avoid costly penalties. Remember to seek professional help if you have any questions or concerns about filing Form 1094-B.