What is Form 1095-C?

Under the Affordable Care Act (ACA), large employers (those having 50 or more full-time employees) are required to provide information regarding their employees'  health insurance coverage on form 1095-C. Employers are also required to file 1095-C with the IRS on paper or electronically. This new category of information returns forms is used to monitor compliance with the ACA rules. Form 1095-C is an IRS tax form that is used to report insurance coverage provided by a business entity. Form 1095-C also lists all dependents of employees who are covered by the employer-provided insurance.

Employers must file this form for each employee to whom they have provided insurance coverage within the year. An employer must provide a statement to the employee to whom the coverage is provided. 

e-file 1095-C form online
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.

Click here for more information on the deadlines.

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. 

Click here for more information on penalties.

Learn More:

About Form 1099-NEC

About Form 1099-MISC

About Form W-2

About Form 1099-INT

About Form 1099-DIV

About Form 1099-B

About Form 1099-C

About Form 1099-R

About Form 1099-S

About Form 1098

About Form 1098-T