Form 1095-C for 2023: Employer-Provided Health Insurance Offer and Coverage

Updated on May 09, 2024 - 10:30 AM by Admin, TaxBandits

As per the Affordable Care Act’s Employer shared responsibility provisions, certain employers are required to offer minimum essential coverage to their employees and must 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.

TaxBandits for Every Business

Beginning from the 2023 tax year, the IRS mandates businesses to file 1095-C electronically if they file more than 10 forms.

This article covers everything you should know about the 1095-C Form.

1. What is Form 1095-C?

Form 1095-C is filed by Applicable Large Employers (ALEs) to report their employees’ health coverage information required under section 6056 (Employer shared responsibility provisions) to the IRS. Employers should also
file Form 1094-C (Transmittal form) along with the 1095-C Form. The IRS also requires that ALEs furnish form copies to the corresponding employees.

2. Who must file a 1095-C Form?

Applicable Large Employers (employers with 50 or more full-time employees) that offer Self-Insured Health Coverage to their employees use Form 1095-C to report the information about offers of health coverage and enrollment in health coverage for their employees.

3. Recent changes to Form 1095-C for the 2023 Tax Year

The IRS has released the ACA Form 1095-C for the 2023 Tax Year recently, and it doesn’t reflect any major changes to the forms.

Notably, there are a few other updates to the ICHRA affordability and ACA penalty rates for the 2023 tax year.

Click here, to know more about IRS Form 1095-C Changes.

TaxBandits for Every Business

Note: The IRS has also proposed new E-filing requirements.

At this time, you are required to file 10 or more 1095 forms electronically. E-File Now

4. What are the 1095-C reporting requirements for Employers who offer Sponsor Self-Insured Health Plans?

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).

5. What are the Reporting requirements if health coverage is offered to Non-Employees?

ALE Members that offer employer-sponsored, self-insured health coverage to non-employees who enroll in the coverage may use Forms 1094-B and 1095-B, rather than Form 1095-C, Part III, to report coverage for those individuals and other family members.

If they choose to use Form 1095-C to report coverage information for non-employees enrolled in an employer-sponsored, self-insured health plan, View Form 1095-C instructions.

6. What information is required to report on a 1095-C Form?

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.

7. When is the deadline to file Form 1095-C for the
2023 Tax Year?

The deadlines to file Form 1095-C are as follows:

Type of Tax Filing Due Date
1095-C Form - Recipient Copy March 01, 2024
1095-C Form - Paper Filing February 28, 2024
1095-C Form - E-Filing April 01, 2024
TaxBandits for Every Business
TaxBandits for Every Business
Note: If the Form 1095-C due date falls on any federal holiday, then the next business day will be the filing
due date.

8. What happens if I fail to file a 1095-C Form?

If an ALE fails to meet all the reporting requirements or fails to meet all the conditions of the employer mandate, the IRS will impose a penalty depending on the size of the organization.

Click here to learn more about 1095-C penalties.

9. Difference between Form 1095-B Vs Form 1095-C?

Form 1095-B is primarily used by health coverage providers and small employers whereas Form
1095-C is used by Applicable Large Employers (with more than 50 full-time employees) to report details regarding the health coverage they offer to employees/individuals.

Click here to learn more about Form 1095-B Vs 1095-C.

10. Is there any extension to file 1095-C Form?

If you need additional time to file your Form 1095-C, you can file Form 8809 , Application for Extension of Time To File Information Returns, and get an automatic 30-day extension.

To learn more about filing an extension, click here.

11. Methods of Filing Form 1095-C?

The IRS accepts both electronic and paper filing of Forms 1095-C.

However, if you are filing more than 10 forms, you must file them electronically.

TaxBandits for Every Business

Note: The IRS encourages the filers to choose electronic filing of Form 1095-C for faster processing.

When compared to paper filing, 1095 C e-filing is the easiest way to complete the forms accurately and securely.

If you still choose to file Form 1095-C by paper, you must complete the Form, print & postal mail it to the IRS. Click here for the Form 1095-C mailing address.

Get Started with TaxBandits to E-File 1095-C Form Effortlessly!

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 of ACA Forms with the states that require ACA Reporting. If you have opted-in to postal mailing or online access services, TaxBandits will also distribute the form copies to your recipients on your behalf.

Here are the benefits of e-filing 1095-C with TaxBandits:

  • Our 1095-C excel templates help you import all your ACA 1095-C Form data
    at once.
  • Our built-in error checks identify basic errors and help you to file accurate returns.
  • We perform USPS address validation before mailing the copies to the employees.
  • We distribute employee copies through postal mail or online portal access.
  • Our Software generates transmittal Form 1094-C.

12. Steps to file Form 1095-C with TaxBandits:

The IRS accepts both electronic and paper filing of Forms 1095-C.

However, if you are filing more than 10 forms, you must file them electronically.

Simply follow the steps below to file your Form 1095-C:

  • Step 1: Create a free TaxBandits account or Login If you have
    one already
  • Step 2: Choose Form 1095-C
  • Step 3: Enter Form Information
  • Step 4: Review Form Information
  • Step 5: E-file it with the IRS and State
TaxBandits for Every Business

Ready to file Form 1095-C?

Create a Free Account Now with TaxBandits and E-file your Form 1095-C in just a in minutes. TaxBandits provides real-time updates on the status of your 1095 C filing.

TaxBandits for Every Business

Get Started Today with TaxBandits

An IRS Authorized E-file Provider You can Trust