Form 1095-C is used by the IRS to determine if the employer owes a payment under the employer shared responsibility provisions under section 4980H. It is also used to determine if an employee is eligible for premium tax credit.
Form 1094-C is a summary form that is filed with form 1095-C electronically or on paper. If an employer has more than 250 full-time equivalent employees, then they are required to file electronically.
Who needs to file Form 1095-C?
Applicable Large Employers (with more than 50 full-time equivalent employees) are required to file form 1095-C. Under the employer shared responsibility provisions of section 4980H, each employer has reporting obligations related to the health coverage they offer to their employees. An employer that offers its employees health coverage through an employer-sponsored self-insurance health plan must file Form 1095-C.
What is the deadline to file Form 1095-C?
The deadline to file this form with the IRS is the end of February if filing on paper. If filing electronically, then the deadline is the end of March. However, the deadline to provide employee copies is the end of January.
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What is the penalty for failure to file Form 1095-C?
If you fail to file correct information returns or fail to furnish a correct employee statement, you may be subject to a penalty. For 2015 reporting, the IRS will not impose penalties for filing incorrect or incomplete information if the filer/employer has made a good faith effort to comply with the reporting requirements. However, employers that fail to file in a timely manner still may be eligible for penalty relief if the IRS determines that the standards for reasonable cause are satisfied.
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