IRS Form 1095-C for 2022: Employer-Provided Health Insurance
Offer and Coverage

Form 1095-C - Understand about Employer Mandate ACA Reporting

Updated on October 27, 2022 - 10:30 AM by Admin, TaxBandits

Generally, the IRS mandates that all employers with 50+ full-time employees (ALEs) are subject to the employer mandate. This states that these employers are required to annually report to the IRS on the coverage offered to their full-time employees.

Employers should use IRS Form 1095-C to report the information required under section 6056, and section 6055.

Table of Contents:

1. What is Form 1095-C?

IRS Form 1095-C, Employer-Provided Health Insurance Offer and Coverage used by Applicable Large Employers (ALEs) to report information about health coverage offered to the employees. Form 1095-C should be filed with the IRS, and copies should be furnished to employees.

ALEs use Form 1095-C to report the following information

  • About offers of health coverage to full-time employees (Includes Spouse, and Kids) which is required under section 6056, and
  • About enrollment in health coverage by employees (Including spouse and children) for employers that sponsor self-insured health plans required under section 6055
  • To determine whether an employer is potentially liable for payment under the employer shared responsibility provisions of section 4980H, and the amount of the payment, if any.
  • To determine the eligibility of the employee (and the employee's spouse and children) for the premium tax credit under section 36B.
  • For employers that are subject to section 4980H and that sponsor self-insured health plans, Form 1095-C is also used to verify the employees' and their spouse and children’s enrollment in minimum essential coverage under the self-insured health plan for purposes of the individual shared responsibility provisions of section 5000A.

2. What are the recent IRS updates to Form 1095-C for the 2022 Tax Year?

The IRS has released the ACA Form 1095-C for the 2022 Tax Year recently, and it doesn’t reflect any major changes to the existing set of codes or lines.

Notably, there are a few other updates in the ICHRA affordability and ACA penalty rates.

ICHRA Affordability:

Based on the federal poverty line percentage, the IRS has set the ICHRA affordability percentage for the 2022 tax year as 9.61%.

Penalties:

Under Section 4980H(a) - the penalty rate is $2,750 for the tax year 2022

Under Section 4980H(b) - the penalty rate is $4,120 for the tax year 2022

Note:

The IRS has also proposed new E-filing requirements

This mandate instructs employers to switch from paper filing to solely e-filing

The current e-file threshold is 250 or more. However, this threshold could be reduced by the IRS in the upcoming year.

It is expected that the IRS will lower the threshold to 100 returns for the 2022 tax year. Beyond 2022, the IRS would then slash this number from 100 to 10.

For more detailed information about the IRS Form 1095-C changes for the 2022 tax year, Click here.

3. Who needs to file Form 1095-C?

  • Applicable large employers (ALE) that sponsor a fully insured plan - An ALE Member must file Form 1095-C for each of its full-time employees, the information required under section 6056.
  • Applicable large employers (ALE) that sponsor a self-insured plan - Also, an ALE Member that offers health coverage through a self-insured health plan must report information about enrollment in the coverage on Form 1095-C, Part III, for any employee who is enrolled in coverage (and any enrolled family members) which is required under section 6055.

Note: ALE members should file IRS Form 1095-C even if the employee only worked for a few months. They should furnish health coverage information in IRS Form 1095-C for the months that the employee worked.

4. What is the deadline for filing Form 1095-C?

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

Type of Tax Filing Due Date
Recipient copy deadline March 02, 2023
Paper filing Form 1095-C February 28, 2023
E-filing Form 1095-C March 31, 2023

Note: If the due date falls on any federal holiday, then the next business day will be the filing due date.

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5. What information is required to report on 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
  • Information about covered individuals if the employer has offered self-insured coverage

Click here to learn more about IRS Form 1095-C line by line instructions.

6. How to file Form 1095-C?

The IRS accepts both filing of Form 1095-C electronically or by paper.

If you are filing more than 250 forms, you must file them electronically. The threshold for e-filing has been reduced to 100 forms for 2022 and only 10 forms for 2023.

E-filing of Form 1095-C

File your Form 1095-C electronically with the IRS, and the required state using TaxBandits, an IRS authorized Form 1095 e-file provider.

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: Enter Form Information

Step 3: Review Form Information

Step 4: E-file it with the IRS and State

If you have opted for postal mailing or online access, TaxBandits will deliver copies to your recipients on your behalf.

Ready to file Form 1095-C?

Create a Free Account Now with TaxBandits and E-file your Form 1095-C in just a few minutes. Get real time updates about your filing status.

Paper filing of Form 1095-C

If you choose to file Form 1095-Cby paper, you must complete the Form, print & postal mail to the IRS.

Click here to find the Form 1095-C mailing address.

IRS recommends electronic filing of Form 1095-C, for faster processing.

In comparison with paper filing, 1095-C e-filing is the easiest way to get it done accurately and securely. It saves time and money, and you can also track the status of your return after you transmit it to the IRS.

7. What other forms need to be filed with 1095-C?

The IRS does not require any forms to be filed with the 1095-C form. However, if you are filing more than one 1095-C, you are expected to file Form 1094-C. We have explained the scenarios below.

Scenario 1: Assume that you want to file a 1095-C Form for 500 employees. But, you are filing for 100 employees first and then filing for the remaining employees. As you are filing forms in batches, you are required to attach 1094-C forms for each portion.

Scenario 2: Let us consider an ALE member filing form 1095-C for employees from two different operating divisions. The first division operates with 200 employees and the second one with 250 employees. As per the IRS, you should file two 1094-C forms for each operating division.

While filing multiple 1094-C forms, only one of them should be mentioned as the Authoritative Transmittal on line 19, Part I. On the Authoritative Transmittal, you must report aggregate data of all full-time employees for whom you have filed 1095-C.

8. How to extend your Form 1095-C Deadline?

If you need an additional 30 days to file your Form 1095-C, you can file Form 8809, Application for Extension of Time To File Information Returns. To learn more about an extension, click here.

9. What are the penalties for late filing of Form 1095-C?

If the Form 1095-C has not been filed by the deadline (or) wasn’t filed with accurate information (or) if 250+ forms were mistakenly paper filed, the IRS will levy a penalty for you depending upon the size of the organization.

Click here to learn more about 1095-C penalties.

To avoid last-minute mistakes and late filing penalties, file your Form 1095-C electronically before the due date with TaxBandits today!

10. Why choose TaxBandits to E-file Form 1095-C?

TaxBandits is an IRS-certified provider that simplifies your Form 1095-C e-filing. You can file your return from anywhere and at any time securely. We follow the latest and highly encrypted protocol to safeguard your data.

Explore the benefits of e-filing 1095-C with TaxBandits below.

  • Our bulk upload template helps you to import all your ACA Form 1095-C data at once
  • Our Inbuilt error checks identify basic errors and help you to file error-free returns
  • We provide Instant return status via email
  • We do USPS address validation before sending the copies to the employees
  • We distribute employee copies through postal mail or online portal acces
  • Our Software will generate transmittal Form 1094-C

We also support filing of ACA Forms with the State that mandates ACA Reporting.

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