QUESTION: Our company is an applicable large employer (ALE) and would like to distribute Form 1095-C electronically to employees. If an employee previously consented to receiving Form W-2 electronically, does that consent also apply to Form 1095-C?
ANSWER: Unless the employee’s consent specifically identifies Form 1095-C, it will not serve as valid consent to receive Form 1095-C electronically. As background, Code § 6056 requires an ALE to provide information to the IRS and full-time employees about the health coverage offered by the ALE. Form 1095-C provides information about the coverage offered to each full-time employee, and it is the employee statement that must be filed with the IRS and furnished to employees upon request when certain requirements are met.
Form 1095-C may be provided to a recipient electronically only if the recipient affirmatively consents to receive the statement electronically in accordance with applicable requirements. Although the consent requirements for receiving Form 1095-C electronically are similar to those for electronic receipt of Form W-2, the IRS requires that an employee’s consent must specifically identify Form 1095-C. Prior to, or at the time of consent, the employee must be provided a clear and conspicuous disclosure statement containing specified information, such as the scope and duration of the consent, the hardware and software requirements to access the form, a description of the procedure for requesting a paper copy, and the process for withdrawing consent. The consent must be given in a manner that reasonably demonstrates that the recipient is able to access the statement in the electronic format in which it will be furnished.
Beginning with calendar years after 2023, Form 1095-C is not required to be sent to individuals unless it is requested. An electronic copy of Form 1095-C can be provided to employees who request a copy if the individual has affirmatively consented to electronic receipt of Form 1095-C at any prior time unless the consent is revoked in writing. Prior consent to receive Form W-2 is still not considered consent to receive Form 1095-C. However, an employer may request consent from an employee to electronically receive Form 1095-C and Form W-2 at the same time, as long as both forms are specifically referenced.
For more information, see EBIA’s Health Care Reform manual at Section XXXVI.D.5 (“Manner of Filing Returns and Furnishing Statements”) and EBIA’s Form 1094/1095 Workbook for Employers and Advisors at Section IX.E (“Method of Furnishing Statements”).
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