About Year-End Processing: IRS Forms

ACA-related year-end processing involves working with IRS Forms 1094-C and 1095-C.

Background

Form 1095-C indicates, for each month of the reporting year:

• Coverage offered to an employee
• Lowest-cost premium available
• Safe harbor coding
• Plan enrollment for self-insured plans

Form 1094-C contains employer information ("client" information in PrismHR). This includes:

• Contact information
• Number of employees
• Percentage of employees offered appropriate coverage
• Transitional relief or methods used
• Other employers part of the same large employer group

Supported Outputs

Note:  Because the Form 1095-C PDF uses employer information from Form 1094-C, you must fill in this information in the client 1094‑C record before you can print any 1095-Cs.

The system builds ACA data and ACA reports on a client-by-client basis. If you configure your settings correctly, you can also account for employees who worked for multiple clients within the same group. In this case, you must identify the appropriate employees and then manually adjust their coding – for one or more clients.

At this time we do not support Forms 1095-B and 1094-B.

The system produces the following ACA transmission outputs:

• Printable Form 1094-C and Form 1095-C PDFs, for each client
• Billing Document Specialists (BDS) and CIC Plus (CIC) download files to submit to third-party processing companies
• Employee Portal (EP) PDF downloads – PrismHR only
• ACA Information Return (AIR) file

The ACA Information Return File

After you finish building your ACA data, you can create the ACA Information Return (AIR) file, which enables you to e-File your ACA information to the IRS.

This file includes:

• A checksum in the SHA256 format.
• A Prior Year indicator. This tells the IRS if you are filing for a reporting year prior to the most recent one. It is set to No unless you run it for a year two or more years before the year in which you build the AIR file. For example, if you run the report in 2021 for 2020, it will be No. If you run it for 2019, it will be Yes.