1095-C Reporting

ACA Reporting

Navigating the complexities of tax filing can be challenging for many businesses, especially when it pertains to healthcare provisions under the . Central to this is Form 1095-C, a crucial reporting tool for Applicable Large Employers (ALEs) detailing health coverage offers and enrollment. With stringent requirements, specific deadlines, and potential penalties for non-compliance, understanding is pivotal for businesses aiming to fulfill their obligations seamlessly. This article delves into the intricacies of Form 1095-C reporting, offering insights into its essential components, requirements, associated deadlines, and the ramifications of missteps in its submission.

What is Form 1095-C?

is a tax form that is used by ALEs, or employers with 50 or more full-time and full-time equivalent employees. It's used to report information about health insurance offers made to full-time employees. It's an essential part of the , specifically for determining Employer Shared Responsibility provisions (ESRP).

Employees should also receive a copy of for their records. The form shows which months the employee and their dependents were offered coverage and/or enrolled in coverage.

General information about Forms 1094-C and 1095-C

Forms and 1095-C are tax forms specifically tied to ACA Provisions. These forms are used specifically by ALEs to report the offers of coverage made to full-time employees. The forms show detailed information about the health insurance offers that were made to each employee.

Each Form 1095-C has specific information about the health insurance offered to an employee. These forms should be furnished to the applicable employees and filed with the IRS. However, Form 1094-C is a transmittal form, or summary form, that accompanies the filed with the IRS. It provides a summary of the filing and more information about the employer. Together, these forms are used to verify compliance with the ACA.

What information is included in Form 1095-C reporting?

is used by ALEs to report health insurance offer and coverage information as required by the . It provides detailed information about the offers made to each employee. It includes the following information:

Form 1095-C Line-by-line instructions

  • Part I, Employee & Applicable Large Employer Member (Employer) Information
    • Lines 1-13: This section includes the basic information for both the employee and employer (name, tax identification number, address, and contact information).
  • Part II, Employee Offer of Coverage
    • Lines 14-17: This section shows the offer of coverage for each month of the year using the specified codes issued by the IRS.
      • Employee’s Age on January 1
      • Plan Start Month
      • Line 14 - Offer of Coverage
      • Line 15 - Employee Required Contribution amount
      • Line 16 - Section 4980H Safe Harbor and Other Relief
      • Line 17 - Zip Code
  • Part III, Covered Individuals
    • This section includes information for all individuals covered under the offered healthcare insurance plan, including the employee. This portion is only completed if the employer offered an employer-sponsored, self-insured plan in which the employee or other covered individual enrolled.

The information provided in the outlines the type of coverage and its affordability. By examining the form, employees can determine if they had ACA-compliant coverage, and the IRS can determine if employers met their employer shared responsibility obligations.

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Who needs to submit a Form 1095-C filing?

Submitting a filing to the IRS is a requirement for all ALEs. An ALE, or Applicable Large Employer, is an employer that had an average of at least 50 full-time and full-time equivalent employees during the previous calendar year.

ALEs are required to offer health insurance coverage to their full-time employees that meets . They must also use and 1095-C to report the offered coverage to the IRS.

What are the deadlines for Form 1095-C reporting?

There are a couple of that ALEs must adhere to for their ACA reporting. They are as follows:

  • March 2nd - Deadline to furnish employee copies
  • March 31st - to e-file with the IRS

Please note that anyone with more than 10 Forms 1095-C must submit an with the IRS.

It's essential for employers to be aware of these dates to ensure timely compliance and avoid .

What are the filing methods for Form 1095-C reporting?

allows for two primary filing methods: electronic and paper. ALEs that need to submit 10 or more Form 1095-C documents are required to file electronically through the IRS's Information Returns (AIR) system.

However, those submitting fewer than 10 forms have the option to file via paper, though electronic filing is still encouraged for its efficiency. When using the paper method, ALEs must also send the transmittal to accompany the set of Form 1095-C documents.


Non-compliance with the can lead to penalties for ALEs. Penalties may be imposed for failing to provide Form 1095-C to full-time employees or for not filing the form with the IRS by the stipulated deadlines. Additionally, can also arise from submitting incorrect information or incomplete forms. The penalty amounts are as follows:

  • Failure to file (or failure to file correct forms) - $310 per form
  • Failure to distribute recipient copies - $310 per form
  • Failure to file electronically if required - $310 per form
  • Penalties may be higher if there is intentional disregard

It's crucial for employers to be aware of these potential and ensure timely and accurate compliance to avoid financial repercussions.

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Key Takeaways

In the labyrinth of regulatory compliance, emerges as a cornerstone for businesses navigating the stipulations of the (ACA). Ensuring accurate and timely reporting not only safeguards businesses from potential financial penalties but also underscores their commitment to employee well-being through healthcare provisions. By keeping abreast of the requirements, , and nuances of Form 1095-C, businesses can uphold their responsibilities with confidence, fostering a culture of transparency and adherence to regulatory standards. As the ACA continues to shape the healthcare landscape, diligent attention to remains paramount for every Applicable Large Employer (ALE).

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