1099Manager.com - Frequently Asked Questions

New ACA information reporting, 1095-C, 1094-C

What is 1099manager.com?

The website is designed for users to manage payment checks to contractors (non-employees), create 1099 forms and e-File to the IRS efficiently.

  1. Create, print and manage payment checks for 1099 contractors. The checks are then added together to create 1099-misc forms automatically at the end of the year for reporting to the IRS.

  2. Create 1099-misc forms directly by batch data upload or online entry, if you do not need to create payment checks in 1099Manager. You can print one or a batch of 1099-misc forms and e-File the data to the IRS when you are ready.

  3. Create 1099-misc corrections if you need to make any change to any 1099-misc form that has already been filed to the IRS.

Can I prepare other 1099 forms with 1099Manager.com?

Users can prepare, print and e-File 1099-R forms for IRSs, annuities, pensions and other distributions. The website can not be used for other 1099 forms like 1099-Div, 1099-Int, etc.

What is a 1099 employee or a contractor employee?

There is no such thing as a “1099 employee”. Never call an independent contractor an employee. It is critical for business owners to correctly determine an individual providing service to the company as an employee or a contractor. There are significant benefits, unemployment insurance and other tax consequences.

There are several criteria commonly used to distinguish a contractor from an employee. IRS website generally provides the best explanation.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

Why is it important to distinguish between employees and contractors?

Taxes and payroll management! If a person is an employee of a company, the employer is required by law to withhold payroll taxes from every paycheck, match the social security and medicare taxes, pay unemployment insurance and other applicable taxes and file payroll reports.

On the other hand, if a person is an independent contractor to a company, the company just needs to pay the contractor with a check, no matching SS, medicare taxes and no payroll management paperwork. The independent contractor needs to pay and report his/her own payroll, SS, Medicare and other tax liabilities.

Should employee payroll and contractor payments be mixed together?

It is really not a good idea to mix employees and contractor together in your payroll records. Payment to a contractor is really an accounting function. The company’s obligation is to pay and report the total payment amount to the IRS at the end of the year if the contractor is not a corporation (no EIN) and the total amount is larger than a certain amount ($600, e.g.). If a payment is made to a corporation, 1099-misc is not required.

How to create and print payment checks for contractors?

With 1099Manager.com, you can create checks one at a time or by the thousands. The system tracks the payments for you throughout the year. You can then consolidate the checks into one form 1099-misc for the year end report. Batch upload create checks by the hundreds of more and manual entry online creates check one at a time.

How to prepare 1099-misc from payment checks at the end of the year?

After the year has ended, you can create 1099-misc forms for the contractors by consolidating all payment checks made to the same contractor. You only need one form 1099-misc for each contractor. After the forms are created, you can edit, print or delete as needed. It is important to make sure you do not create duplicate, extra forms for the same contractor.

Will the 1099-misc forms be filed to the IRS automatically and when?

We will not send the 1099-misc data to the IRS automatically. Since the e-File deadline is typically 3/31 of each year, we suggest users to create, print and distribute the forms, make changes as needed then request e-File submission before the deadline. For example, users can prepare, print and distribute the forms in January. The company can make any corrections to the 1099-misc forms as needed for name, address and amount, etc. After all necessary changes are made, typically around early to mid-March, the user can request e-File submission and we will process and file the 1099 data to the IRS as required.

What if more changes are needed after the1099 data has been e-Filed to the IRS?

After the data has been filed to the IRS, if you need to make more changes, you can prepare 1099-misc correction forms. You can print and distribute the correction forms and request e-File submission and we will process and e-File the corrections accordingly.

If I did not prepare and file the 1099 forms from the website, can I prepare and file 1099 corrections from 1099Manager.com?

Yes, even if you have prepared and filed 1099 elsewhere, you can use 1099Manager.com to prepare, print and e-File 1099 corrections.


What is 1095Manager.com?

1095 Manager is designed for users to create 1095 forms, edit, print, re-print and e-file Form 1095 to the IRS efficiently.

  1. Create, edit, add, delete, print and manage Form 1095-C and Form 1094-C.
  2. Forms can be created in batch or one at a time by online data entry.
  3. Create, print and eFile 1095-C corrections.

What is the purpose of Form 1095-C and Form 1094-C?

As part of the ACA (Affordable Care Act) implementation, employers with 50 or more full time employees are required to report information with Form 1095-C for health insurance plan and coverage offered by the companies. Form 1094-C is the summary information for each employer for Form 1095-C in the batch.

The information is used to determine if the employer owes any payment under the employer shared responsibility provisions as defined in IRS code section 4980H. Basically, the employers file Form 1095-C to verify that affordable health coverage have been offered to employees.

Who must file Form 1095-C and Form 1094-C?

ALE (Applicable Large Employers), defined as a company with 50 or more full time employees, is required to file Form 1095-C with Form 1094-C to report its health coverage offer. There are detailed information and definitions for part-time and full-time equivalent calculations at the www.irs.gov website. Our recommendation is that if your company has close to 50 and some part-time employees, you may want to go ahead and file, do not worry about the full-time equivalent calculations. Think of it as you do for Form 1099-MISC filings, you may choose to file when you are not sure if the recipient is a corporation or not (no W-9).

What about Form 1095-A, Form 1095-B and Form 1094-B?

Form 1095-A is Health Insurance Marketplace Statement. The Marketplace is also known as the Health Insurance Exchange or www.HealthCare.gov and State-based Marketplace. Your companies do not need to worry about the form.

Form 1095-B is used to verify that individuals are covered by Minimum Essential Coverage (MEC) thus are not subject to individual shared responsibility payment (when filing 1040s). Typically, the forms are issued by health insurance organizations. Companies with 50 or more employees file Form 1095-C while small business (<50 employees) that are not subject to the employer shared responsibility provisions will file Form 1095-B and Form 1094-B.

What are the deadlines for Form 1095-C and Form 1094-C?

Employers needs to issue Form 1095-C and Form 1094-C, if required, to employees before the end of January. The reports are due to the IRS by the end of Feb and e-file extends the filing deadline to the end of March. These are the same deadlines as those for W-2s and Form 1099s.

What information is required for completing Form 1095-C and Form 1094-C?

In addition to the basic employee information (name, SSN, address, etc) and employer information (company name, EIN, address, etc.), the form requires:

  • Line 14 – series 1 code, identify the health care coverage offered (or not offered) by the company.
  • Line 15 – Employee share of premium, not including dependents. The amount is $0.00 if company pays 100% of the premium for the employee.
  • Line 16 – series 2 code, describe or explain the offer or non-offer from line 14

If the company is self-insured (self-funded), part III of the form is required to include information of all persons covered together with the employee.

What is the best way to gather the information required for Form 1095-C?

Unlike W-2 where information resides in payroll department or 1099-misc where the accounting department has all vendor information, Form 1095-C required insurance premium information. Form 1095-C line 15 reports the employee’s share of the premium, not necessarily equal to what the employee actually pays for the insurance. For example, the employee could choose a more expensive plan or the employee can choose to purchase insurance for his or her spouse and dependents. Form 1095-C line 15 is used to determine the affordability of the plan, not the actual premium payment.

For self-insured plan, dependent information is required while most companies probably do not have the dependent information handy.

Information required for Form 1095-C is best gathered between payroll and HR/Benefits department with additional information possibly from the insurance broker. Since the insurance company typically bill monthly and has the census information for all that are insured, including the dependents. The insurance broker may help the company to obtain the payment/invoice history that includes the premium and the insured personal information (birth date, e.g.). Together with the basic employee and payroll deductions, the forms can be prepared effectively.

What is the process for creating, editing, printing, and e-filing Form 1095-C?

You need to gather information as soon as possible because the required information resides in different databases. You may need to spend time merging the data together. You should evaluate and select a service provider soon to prepare and provide all information as required. Because Form 1095-C is not designed to be mailed in a two-window envelope, it may be easier to print and hand it out with the year end W-2 form to the employee. Because Form 1095-C and the mandatory filing are new, there may be some confusion in getting the right data and process the forms efficiently. Starting early is the best approach.

What can www.1095Manager.com do for your company?

Our company has been an IRS authorized payroll eFile service provider for more than 15 years. We are familiar with all the information reporting and correction filing requirements and we are very efficient in data processing, print & mail and eFile.

If you can gather the Form 1095-C information on Excel worksheets, we can process and create Form 1095-C in PDF so you can print on plain paper for distribution. We can then e-file Form 1095-C data to the IRS, together with the Form 1094-C information and provide you a confirmation when it is done.

The form is new, but we do not believe it needs to be very complicated. We are ready to work with you to gather the required information, prepare the forms and file the data to the IRS. If you have any question, please do not hesitate to contact us by email support@esmartpayroll.com or phone, 408-935-8969.

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