Yes.

We can print and mail any size order with complete security.  We duplex print the 1095 form on one side and the mailing address and instructions on the other side of single sheet of paper.  We have machines that tri-fold, stuff and seal pre-postage paid envelopes.

Here are the steps you would want to take to have us print and mail on your behalf:

Go to File/Print or File/Preview.  A print options box will display that looks like the following:

When you print, client data is printed on top of an image of the 1095 form.  If the data prints too high, then increase the value of the top offset to move client data down.  If the top offset is 0.00 then increase it to 0.15 or 0.30 pixels and then hit the Save button to the left.  If the data prints too low, then decrease the value of the top offset to move client data up.  If the top offset is set at 0.30 and its printing to low, then decrease the value to 0.15 or 0.00 and hit the Save button.

Many clients have approached us to efile prior year 1095-B and 1095-C data.  Both originals and corrections can be electronically filed for prior tax years.  Here are the steps:

1. Use the prior year ACA software to generate the data file.  The header and body of the XML data file must match schema for that particular prior year.
2. Use the current year ACA software to generate the manifest file. But you need to make changes to the 2016 manifest file.
3. When your generate the manifest file, the software asks for ‘payment year’ and ‘are you efiling a prior year’ and whether the file is an original or correction.  Select the prior year payment year, yes that are efiling a prior year, and whether the file is an original or correction.
4. Change the Software IDs in the manifest file to reflect the prior year software IDs.  The current list of Software IDs is here:

2017  17A0005496 1095-C
2017  17A0005495 1095-B

2016  16A0003317 1095-C
2016  16A0003316 1095-B

2015  15A0000123 1095-C
2015  15A0000124 1095-B

Those are the steps.  If you have any problem efiling prior year ACA data, call or email us anytime.  We can efile on your behalf.  Just call our sales office at (480) 460-9311 and they can get you started.  If you have your data ready, we can typically efile the same day you provide the data.

Roughly 5% of the files that we have uploaded to the IRS AIR System have stalled and then came back with the dreaded ‘Gateway Timeout Error’.  A gateway timeout error means that the IRS server is taking so long that it’s ‘timing out’.

If you reach this error, your file may or may not have been successfully uploaded.  Instead of clicking the ‘back’ button on your browser and transmitting again, instead go to ‘Check Transmission Status’ and check the file status using the UTID which is the Universal Unique Transmitter ID.  The UTID is at the top of the manifest file between these fields:

<p3:UniqueTransmissionId></p3:UniqueTransmissionId>

Its a really long number!  Use that long number to check transmission status.  If results come back, then you know the file was transmitted and you can move forward based on those results.  If there are no results for the UTID, then try transmitting again.

If you click the ‘Back’ button on your browser and then transmit again and attain a Receipt ID, you might get these error results when you check your file status:

The Header ‘UniqueTransmissionId’ must not be a duplicate of the ‘UniqueTransmissionId’ from another transmission.

Manifest ‘ChecksumAugmentationNum’ must not match a ‘ChecksumAugmentationNum’ of any AIR transmission from the same ‘TCC’ previously accepted.

The error message will also tell you the Receipt ID for the original file that was sent.  You can use that Receipt ID and your TCC and find the status of the original file that was submitted.

I hope this helps.  Don’t hesitate to call or email with any questions about the 1095-B, 1095-C forms and efiling.  Our sales office can be reached at (480) 460-9311 or by email at support@1099fire.com.

Void is a correction.  To void a record, you put together an excel file with the 6 extra columns which are namely First, Middle, Last, Suffix, TIN and CorrectedUniqueRecordID.  You can read about how to set up a correction at this link:

https://www.1099fire.com/blog/aca-replacement-and-corrections/

The 6 extra columns pinpoint which record needs to be corrected.  To the left of the 6 extra columns:

• Line 14 needs to show Code “1H (No Offer of coverage) in “All 12 Months”
• Line 15 must be blank since there was no ‘Offer of Coverage’
• Line 16 needs to show “2A (Employee not employed during the month)” in “All 12 Months”
• Uncheck the “Covered Individual” checkbox
• Remove all covered individuals

And submit as a 1095-C correction.

The name True is a beautiful, wonderful English name.  But when you type in Excel a first, middle or last name of ‘True’, Excel treats the name True as a boolean expression.  And when you create the files for electronic submission to the IRS, you will see something like:

<PersonFirstNm></PersonFirstNm>

where the name is empty.  To avoid this error, type ‘ and then the name True.  The ‘ in front formats the cell as text.  The software imports in the correct name and will efile the correct name.

Verify that the Transmitter Control Code (TCC – included in the ACA Business Correlation ID) is valid, in the “Active” status, and authorized to transmit the Information Returns included in the transmission (Note: If the transmission is rejected with Header-005 or Header-006 (SysError 1 or 2) wait 48 hours, then retransmit.)

I put together a sample file with the following business name and street address:

business name: Selitestthree & Incorporated
street address: 6689 Willow & Court

I generated the XML.  Our 1095 software will replace & with &amp; as the business name and
show it in XML like so:

<BusinessNameLine1Txt>Selitestthree &amp; Incorporated</BusinessNameLine1Txt>

This is correct. The street address will appear as:

<AddressLine1Txt>6689 Willow &amp; Court</AddressLine1Txt>

When I validate, the business name is fine and no error shows up.  The street address has this
error:

l‘

If I replace in the XML &amp; with just & so that it looks like:

<AddressLine1Txt>6689 Willow & Court</AddressLine1Txt>

and validate, I get “Error in reading XML“.  What I conclude is that the ampersand as &amp; or & can
not appear in a street address.

Form 1094-C is unchanged from last year.

Form 1095-C changes include:

Employee’s age as of January 1 of the reporting year

The IRS will now require an entry for the “Age” of each employee as of January 1, 2020. This will be in Part 2 on the 1095-C form. Use either an age or the full birth date and our 1099FIRE software will automatically convert the birthdate to age.

Employee age is not discussed in the “Instructions for Recipient” part of the draft Form 1095-C. Its possible employee age will only need to be completed by employers who utilized individual coverage health reimbursement arrangements. If an employer utilized individual coverage HRAs, the employer will need to know the employee’s date of birth to be able to complete this new section.

New line in Part II which asks about the ZIP code

In Part II of Form 1095-C form, a new Box 17 ZIP Code has been added to report information. You fill out the zip code if you are using codes 1L through 1S in Box 14 which represents a Health Reimbursement Arrangement (HRA).

New offer codes which can be entered on line 14

The below offer codes are new on line 14 for tax year 2020.

1L. Individual coverage health reimbursement arrangement (HRA) offered to you only with affordability determined by using employee’s primary residence location ZIP Code.

1M. Individual coverage HRA offered to you and dependent(s) (not spouse) with affordability determined by using employee’s primary residence location ZIP Code.

1N. Individual coverage HRA offered to you, spouse and dependent(s) with affordability determined by using employee’s primary residence location ZIP Code.

1O. Individual coverage HRA offered to you only using the employee’s primary employment site ZIP Code affordability safe harbor.

1P. Individual coverage HRA offered to you and dependent(s) (not spouse) using the employee’s primary employment site ZIP Code affordability safe harbor.

1Q. Individual coverage HRA offered to you, spouse and dependent(s) using the employee’s primary employment site ZIP Code affordability safe harbor.

1R. Individual coverage HRA that is NOT affordable offered to you; employee and spouse or dependent(s); or employee, spouse, and dependents.

1S. Individual coverage HRA offered to an individual who was not a full-time employee.

Form 1095-C is now a 2 page form where Boxes 1-17 are listed on page 1 and the covered individuals are shown on page 2.

The key to coding section 16 is understanding that it is directly related to the codes that reside in section 14 (Offer of coverage).

If you use the code 1A in section 14 as your offer of coverage, you are reporting to the IRS that you are offering coverage that is affordable because it is under the federal poverty line.

• If the employee enrolls in coverage, the code is 1C.

• If the employee declines coverage, your safe harbor code in 16 is 2G. This explains to the IRS why your coverage is affordable and you are basing that affordability on the federal poverty line.

If you use the code 1B, 1C, 1D, or 1E, and

• they enroll in coverage your code in section 16 is 2C.

• If they do not enroll in coverage, you must enter the save harbor code in section 16 that applies to your company. This is an explanation to the government as to why your offer of coverage is affordable. The IRS safe harbor codes are listed below, followed by a summarized explanation of those codes.

IRS Safe Harbor Codes

2E – Multiemployer interim rule relief. Enter code 2E for any month for which the multiemployer arrangement interim guidance applies for that employee, regardless of whether any other code in Code Series 2 (including code 2C) might also apply. This relief is described under Offer of Health Coverage in the Definitions section of these instructions.

Note. Although ALE Members may use the section 4980H affordability safe harbors to determine affordability for purposes of the multiemployer arrangement interim guidance, an ALE Member eligible for the relief provided in the multiemployer arrangement interim guidance for a month for an employee should enter code 2E (multiemployer interim rule relief), and not codes 2F, 2G, or 2H (codes for section 4980H affordability safe harbors).

2F – Section 4980H affordability Form W-2 safe harbor. Enter code 2F if the ALE Member used the section 4980H Form W-2 safe harbor to determine affordability for purposes of section 4980H(b) for this employee for the year. If an ALE Member uses this safe harbor for an employee, it must be used for all months of the calendar year for which the employee is offered health coverage.

2G – Section 4980H affordability federal poverty line safe harbor. Enter code 2G if the ALE Member used the section 4980H federal poverty line safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).

2H – Section 4980H affordability rate of pay safe harbor. Enter code 2H if the ALE Member used the section 4980H rate of pay safe harbor to determine affordability for purposes of section 4980H(b) for this employee for any month(s).

UNDERSTANDING SAFE HARBOR CODES

FEDERAL POVERTY LINE SAFE HARBOR – 2G

If an employer satisfies the requirements for this Safe Harbor, their insurance coverage offering will be considered affordable under the employer mandate.

Who should use the Federal Poverty Line Safe Harbor?

This safe harbor may be most useful for employers with seasonal employees and employers who use the look-back measurement period to determine if variable-hour or seasonal employees have full-time status.

How to use the Federal Poverty Line Safe Harbor

Take the Federal Poverty Line (FPL) for a household of one in the current plan year ($11,880 in 2016), and divide it by 12. If your employees are not paying more than 9.66% (for plan years beginning in 2016) or 9.56% (for plan years beginning in 2015) of the FPL for their health coverage premiums, your coverage is considered affordable under the employer mandate.

Disadvantages of Federal Poverty Line Safe Harbor

This method typically provides the lowest threshold allowed for monthly premiums. Other methods generally allow for a higher monthly premium.

W2 SAFE HARBOR – 2F

If an employer satisfies the requirements for this Safe Harbor, their insurance coverage offering will be considered affordable under the employer mandate.

Who should use the W2 Wages Safe Harbor?

This safe harbor may be most useful to an employer with full-time employees who regularly work 40 hours per week and whose compensation is unlikely to decrease during the year.

How to use the W2 Wages Safe Harbor

Refer to Box 1 of an employee’s current year W2 form. If the employee’s health coverage premium is not more than 9.66% (for plan years beginning in 2016) or 9.56% (for plan years beginning in 2015) of Box 1, your coverage is considered affordable under the employer mandate.

Disadvantages of W2 Wages Safe Harbor

This safe harbor counts only earned wages, and does not permit an employer to impute income that would have been earned had they not taken a leave of absence. Box 1 income does not include pre-tax contributions, which will reduce the maximum affordable amount; this must be calculated monthly for every employee in your company.

RATE OF PAY SAFE HARBOR – 2H

If an employer satisfies the requirements for this Safe Harbor, their insurance coverage offering will be considered affordable under the employer mandate.

Who should use the Rate of Pay Safe Harbor?

This safe harbor may be most useful for employers with hourly employees and the need for a fast, “failsafe” calculation method. If the Rate of Pay safe harbor is met for your lowest-paid employee, then it will also be met for all other employees.

How to use the Rate of Pay Safe Harbor

Multiply an hourly employee’s lowest pay rate during the calendar month by 130 hours. If the employee’s health coverage premium is not more than 9.66% (for plan years beginning in 2016) or 9.56% (for plan years beginning in 2015) of this amount, your coverage is considered affordable under the employer mandate.

Disadvantages of Rate of Pay Safe Harbor

You can only multiply the hourly pay rate by 130 hours per month, even if employees actually work more hours. If you have any employees who are paid purely on commission, you cannot select this safe harbor. You cannot use the rate of pay safe harbor for any salaried employee who experiences a pay reduction in any month.

Letter 226-J is a penalty assessment notice that the IRS sends to employers with 50 or more full-time employees.  Letter 226-J is the first letter you would receive from the IRS and the first step the IRS has taken to enforce the ACA mandate.

One of the most common reasons Letter 226-J is sent is because the employer has yet to submit an ACA information filing to the IRS for tax year 2015, 2016, 2017 or later.  If you didn’t paper or electronically file the 1095-B or 1095-C forms, now is your time to do so.  We can help.  We can prepare for you to review current or prior year 1095 forms and once approved, we can electronically transmit to the IRS and forward the results when they arrive.  All e-filing is done using our company’s transmitter control code or TCC number. This eliminates the hassle of obtaining an account with the IRS.  Just contact sales at (480) 460-9311 to get started.

Once a response has been submitted to the IRS, the client should expect to receive a second letter from the IRS. This will be Letter 227, which is a series of five different letters that the IRS is using to acknowledge responses to Letter 226-J. The different versions describe additional actions that may be required of an employer to address. They are listed here in their order of preference:

Letter 227K: This is the letter that you hope your client receives. It means that the case has been resolved in the employer’s favor. Essentially, 227K acknowledges that the information in the employer’s response to Letter 226J was accepted, the employer does not anything and the IRS has closed its inquiry.

Letter 227L: While not as thrilling as receiving Letter 227K, receiving this version of Letter 227 is still a plus. The IRS sends this version of the letter when it agrees with the employer that the amount owed should be reduced. While the employer will still have to make a payment, it won’t be as much as originally requested.

Letter 227M: This version of the letter is not one that you want your client to receive. This is the version the IRS sends when it disagrees with the employer’s response to Letter 226J and reiterates its demand for the original penalty assessment.

There are 3 new IRS forms for tax year 2019. Form 1098-F is not required until further notice.

IRS Form 1098-F is known as Fines, Penalties, and Other Amounts is a new information return that was created from the 2017 Tax Cuts and Jobs Act. Form 1098-F is used by government or government entities that exercise self-regulatory powers to report fines, penalties, and other amounts to recipients who paid those amounts.

IRS Form 1099-LS is titled Reportable Life Insurance Sale and reports the amount paid to a recipient from a life insurance sale, the date of sale, and Issuer’s name.

Form 1099-SB is titled Seller’s Investment in Life Insurance Contract and is used by the issuer of a life insurance contract policy to report the amount the seller would receive upon surrender of the transferred insurance contract, the issuer’s estimate of investment in the life insurance contract as well as the assigned policy number.

We can answer almost any technical support question you have and we are happy to help.

The most common questions we receive are:

1. How do I import data into your 1099FIRE software? Can you show me how?
2. How can I electronically transmit a file to the IRS? Can you show me how to upload a test
   file?

We can walk you through importing data into our software, printing or converting to PDF, setting
up an account with the IRS and attaining a Transmitter Control Code (or TCC number) as well
as submitting a test file directly to the IRS. Its easy to do and once you learn how to file electronically
you will never go back to paper filing. Electronic filing is a breeze once you learn how and we are
thrilled to walk you through the process and answer any question you have.

We have time before November 28 (Thanksgiving day) to talk by phone and answer any question
you have and to go through examples. Please call (480-460-9311) or email (support@1099fire.com) to
setup an appointment and we will call you back at a convenient time and answer questions and walk
you through examples.

The District of Columbia and state of New Jersey requires reporting of 1094 and 1095 forms to verify health coverage information supplied by individual Income taxpayers. Employers and all other providers of Minimum Essential Coverage to New Jersey residents must send health-care coverage returns to the State for tax year 2019.

Companies are encouraged to send data pertaining only to New Jersey full-year and part-year residents. Filers must provide 2019 coverage information electronically by March 31, 2020. The due date for District of Columbia is June 30, 2020.

Out-of-State Employers of New Jersey Residents:

Out-of-State employers who employ New Jersey residents have the same filing requirements as in-State businesses. These requirements are not limited to businesses that withhold New Jersey payroll taxes. If you are an out-of-State employer, you must ensure that the state of New Jersey receives any required 1095 document for each New Jersey resident you employ. Insurers, government agencies, multiemployer plans, and all others responsible for reporting Minimum Essential Coverage to New Jersey residents also must file the required information with the State.

1099FIRE Service Bureau/NJ Upgrade

1099FIRE has established an account with New Jersey to be able to electronically transmit 1095-B and 1095-C filings on behalf of our customers.  If you are an outsource customer we can file the state filing on your behalf using your original data file.  We will generate a second file containing only the NJ residents in the format required by the state.

If you are a software customer filing on your own, the software can be upgraded to include the NJ filing module for an additional fee.  Please note, you will need to establish an account with the NJ Treasury department.