Form 1095-C - An Overview
As per the Affordable Care Act’s Employer shared responsibility provisions, certain employers must offer minimum essential coverage to their employees and report that information to the IRS.
Form 1095-C is filed by Applicable Large Employers (ALE) with 50 or more full-time employees to report their health coverage information to the IRS. Also, it is mandated for employers to distribute 1095-C Form copies to employees who work full-time for one or more months of the calendar year.
Starting from the 2024 tax year, the IRS now requires businesses filing more than 10 forms to e-file Form 1095-C.
Table of Contents:
- What is Form 1095-C
- Who must file the 1095-C Form
- Changes to Form 1095-C for 2024 TY
- Form 1095-C Reporting Requirements
- Information required to file the 1095-C Form
- Deadline to file Form 1095-C
- Form 1095-C Penalties
- Extension to file 1095-C Form
- How to File 1095-C Form
What is Form 1095-C?
- Form 1095-C, Employer-Provided Health Insurance Offer and Coverage is filed by Applicable Large Employers (ALEs) to report employee health coverage details to the IRS, as required under Section 6056 (Employer Shared Responsibility Provisions).
- In addition to Form 1095-C, employers must submit Form 1094-C (Transmittal Form) to the IRS for each submission.
- Furthermore, the IRS mandates that ALEs distribute copies of Form 1095-C to their employees to ensure transparency and compliance.
Who must file Form 1095-C?
Applicable Large Employers (ALEs)--Businesses with 50 or more full-time employees that offer self-insured health coverage must use Form 1095-C to report details such as health coverage offers made to employees and employee enrollment in the self-insured health plan.
What are the changes to Form 1095-C for the 2024 tax year?
The IRS has released the ACA Form 1095-C for the 2024 tax year with no major changes to the form itself.
However, employers should take note of important updates, including adjustments to ICHRA affordability and changes to ACA penalty rates for 2024.
Click here to learn more about the latest IRS Form 1095-C changes.
The IRS has provided new e-filing requirements, making electronic filing mandatory for businesses filing 10 or more Form 1095s. Stay ahead of the changes and ensure compliance with seamless 1095 e-filing!
What are the reporting requirements for Form 1095-C?
An employer who offers health coverage through a self-insured health plan should report that information on Form 1095-C, Part III, for any employee who is enrolled in coverage (and any spouse or dependent of that employee).
What information is required to file Form 1095-C?
To file ACA Form 1095-C, the following information is required:
- Employees’ name, SSN, and address
- Employer’s name, EIN, and address
- Information about the health care coverage provided to the employee
- Employee Required Contribution, if any
- Details about the covered individuals
Click here to learn more about the IRS Form 1095-C line-by-line instructions.
What is the deadline to file Form 1095-C?
The deadline to file Form 1095-C are as follows:
| Type of Tax Filing | Due Date |
|---|---|
| 1095-C Form - Paper Filing | February 28, 2025 |
| 1095-C Form - Recipient Copy | March 03, 2025 |
| 1095-C Form - E-Filing | March 31, 2025 |
What are the penalties for failing to file Form 1095-C?
If an Applicable Large Employer (ALE) fails to comply with all reporting requirements or does not meet the conditions of the employer mandate, the IRS may impose penalties based on the organization's size.
Click here to learn more about 1095-C penalties.
How can employers request an extension to file Form 1095-C?
If you need more time to file your Form 1095-C, you can request an automatic 30-day extension by submitting Form 8809, Application for Extension of Time To File Information Returns.
Click here to learn more about filing an 8809 extension and avoiding late penalties.
Get Started with TaxBandits to file Form 1095-C
TaxBandits is an IRS-authorized provider that simplifies your Form 1095-C e-filing process. You can file your 1095-C Form easily and securely with our cloud-based application. We follow the highest security standards and encryption protocols to secure your data.
With TaxBandits, you can file your Form 1095-C electronically with the IRS. We also support filing ACA Forms with states requiring ACA Reporting. If you have opted into postal mailing or online access services, TaxBandits will also distribute copies of the form to your recipients on your behalf.
Here are the benefits of e-filing 1095-C with TaxBandits:
- Easy Data Import: Upload all your ACA 1095-C Form data at once using our 1095 Excel templates.
- Built-in Error Checks: Our system flags common mistakes to help you file accurate returns.
- USPS Address Validation: We verify addresses before mailing, ensuring successful delivery.
- Employee Copy Distribution: Choose postal mail or secure online access for recipients.
- Automated Transmittal Form: We generate Form 1094-C for seamless filing.
ACA reporting doesn’t need to be complicated—file your 1095-C with TaxBandits today!
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