What is Form 1095-B? Employer responsibilities and health coverage reporting

How Form 1095-B Supports ACA Compliance

Form 1095-B is used to report information about individuals who have had minimum essential healthcare coverage during the tax year. The form helps the IRS verify that individuals have met the ACA’s coverage requirements.

Though the federal penalty for not having minimum essential coverage is no longer in effect, some states still have individual mandates. Form 1095-B helps those living in these states to show they had qualifying health insurance plans and avoided potential state-imposed penalties.

Why Form 1095-B is important for employees

What is the 1095-B form used for? For employees to determine which tax form they’ll need, it’s important to understand the difference between Form 1095-A and 1095-B.

• Form 1095-A is only used to report tax credits related to healthcare coverage
• Form 1095-B is used to prove the minimum essential healthcare coverage from an outside source, such as an employer

For employees, Form 1095-B is proof that they and their covered family members had access to minimum essential health coverage for at least one day during the tax year. This is important documentation that Uncle Sam may require for federal income tax returns in states with individual mandates. For employees asking, “How to get a copy of my 1095-B form online?” it is freely available via the IRS website.

Moving on, let’s see what other documentation related to the Affordable Care Act should be on your radar.

Form 1095-B vs. other ACA-related forms

The 1095-B isn’t the only 1095 form related to the ACA. It’s also helpful to know about Form 1095-C and Form 1094-B.

Form 1095-B vs. Form 1095-C

Form 1095-C is the “Employer-Provided Health Insurance Offer and Coverage” form. It’s used by Applicable Large Employers (ALEs), which generally refers to employers with 50 or more full-time employees. These organizations are required to report all applicable information about their employee health insurance plans and whether those offerings meet the ACA’s responsibility provisions. If you’re an ALE, you’ll likely be required to use Form 1095-C, which has different reporting requirements.

Form 1095-B vs. Form 1094-B

Form 1094-B is the “Transmittal of Health Coverage Information Returns,” used by health coverage providers when they’re sending Form 1095-B to the IRS. It acts as a cover page providing a summary of the 1095-B Forms submitted with it. If you’re a small employer sponsoring a self-insured health insurance plan, you will generally need to file both IRS Form 1095-B for all your covered employees, as well as Form 1094-B.

Also we the table below for a summary of what these forms do.

Who needs to file Form 1095-B

Three different kinds of organizations are required to annually file Form 1095-B with the IRS. These are health insurance providers such as insurance companies that provide minimum essential health coverage, government agencies that also provide similar care, and small employers who offer self-insured employee healthcare plans. Let’s take a closer look at that last category.

If you operate a small business with fewer than 50 full-time employees and sponsor a self-insured health insurance plan, you’re required to file Form 1095-B for all your employees who are enrolled in the plan. You’ll also need to file Form 1094-B when you send these forms to the IRS.

You generally don’t need to file Form 1095-B if you are a small employer offering a fully insured health insurance plan paying premiums to an insurance company that then covers your employees’ healthcare costs. In this case, the health coverage providers are responsible for this type of reporting.

Now that we better understand the ins and outs of these forms, let’s find out how they must be completed.

Filing deadlines and requirements for employers

If you run a small business and sponsor a self-insured employee health insurance plan, there are specific filing deadlines and other requirements related to Form 1095-B.

As an employer, you must provide Form 1095-Bs by a specific date to all your covered employees. This is usually in early January for the previous tax year. But, the deadline can change from year to year, so always check to make sure your calendar is up to date.

You’ll need to file the completed 1095-B Forms with the IRS by a separate deadline, along with Form 1094-B.. This usually falls at the end of February for paper filing and the end of March if you’re filing electronically. Again, the exact dates can change, so stay informed by maintaining a 2025 payroll calendar.

If you file late or include incomplete or inaccurate information, the IRS can impose certain penalties. These penalties can be more than a slap on the wrist, so it’s worth the time to double-check all the information before you file. If you need more time before the due date to gather information, be sure to request a 30-day deadline extension by filing a Form 8809.

It’s worth noting that the IRS encourages electronic filing for all information returns, including Form 1095-B. If you need to file 10 or more information returns, including but not limited to Form 1095-B, you are required to file electronically.

What information is reported on Form 1095-B

Form 1095-B includes all of the essential information needed for health coverage providers and the employees enrolled in these plans. This includes:

• Policyholder information: This is identifying information like the name, address, and Taxpayer Identification Number (TIN) of the primary insured employee
• Covered Individuals: This form reports the names and TINs of everyone covered under their relevant health insurance plans
• Coverage Periods: Form 1095-B shows which months during the calendar year that each employee or their dependents had minimum essential health coverage. This is important to clarify the duration and type of coverage offered
• Issuer Information: The form lists the various health insurance providers, or, in the case of a self-insured plan, the sponsoring employer

Bear in mind that you won’t need to copy information from Form 1095-B to your federal income tax return. Form 1095-B is mainly used to provide information and confirm minimum essential health coverage.

It’s still a good idea to keep the form for your records, especially if you live in a state that has an individual health insurance mandate. When filing your state tax return, in some cases to confirm you met coverage requirements, you may need to provide information from Form 1095-B.

What employers need to know about Form 1095-B compliance

If you’re a small employer sponsoring self-insured employee health insurance plans, there are a few important things to know to ensure that you are compliant with Form 1095-B requirements:

• Keep accurate coverage records: Keep thorough and detailed records for all of your employees and any of their dependents who are enrolled in your health insurance plans. This includes their names, Social Security numbers, and the dates their coverage began and ended
• Know your filing obligations: Stay current with the filing deadlines for supplying necessary forms to your employees and submitting them to the IRS
• Include all the necessary information: Make sure the information you include on Form 1095-B or any other related form has complete and accurate information, including the correct TINs for everyone covered under the relevant health insurance plan
• Choose your filing method: Decide whether you’ll file electronically or on paper. Remember if you have 250 or more returns, there’s an electronic filing mandate
• Keep your employees informed: Let your employees know that you’ll be giving them Form 1095-B and why