Monday, November 23, 2015

ACA Forms 1094-C and 1095-C

Welcome to Part Three of the ExpressIRSForms blog series on the soon-to-be required Affordable Care Act IRS forms. Last week we went over Forms 1094-B and 1095-B, which are filed by health insurance providers; and today, we’ll dive right on into Form 1095-C for Applicable Large Employers!

Who Needs to File?
Well, as we said above, Form 1095-C is filed by Applicable Large Employers. But just who is “Applicable”? When we use the term “Applicable Large Employer,” or ALE, we’re referring to employers with 50 or more full-time employees, including full-time equivalent employees, in the previous year. ALEs are required to file Form 1095-C by the ACA and the IRS in order to report offers of health coverage and enrollment in health coverage for their employees. Additionally, Form 1095-C is used in determining whether an employer owes payment under the employer shared responsibility provisions under section 4980H.

If you’re an employer who offers employer-sponsored self-insured coverage to your employees, you’ll also need to report information to the IRS on Form 1095-C. You’ll report information to the IRS and your employees about their minimum essential coverage (MEC) under the employer plan.

What Information is Needed?
In order to complete Form 1095-C, you will need the following information:
  • The name, SSN, and complete address of your employee
  • The name, EIN, complete address, and contact number of the employer
  • Plan Start Month for the specific employee
  • The Offer of Coverage code applicable to this employee
  • The amount of the Employee Share of Lowest Cost Monthly Premium per month
  • If applicable, a Section 4980H Safe Harbor code
  • The names and SSNs or birth dates for all covered individuals (spouse, dependents, etc.) and the months in which they were covered
E-Filing vs. Paper Filing
As an e-filing service, we’re a little biased about which way we think you should go when you’re filing. But don’t just take our word that e-filing is the better way to go; the IRS recommends everyone e-file as well, since it’s quicker, easier, and cuts down on errors and paper usage. And keep in mind that if you have 250 or more returns to file, you’re required to e-file and could face penalties if you don’t.

If you decide to stick to your guns and paper file anyway, remember that Form 1094-C must be sent along to the IRS with all of your 1095-C forms. Form 1094-C, the Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns form, is essentially a cover sheet for your 1095-C forms. On this form, you’ll include all of your identifying contact information, the total number of Forms 1095-C you’re submitting, and the total number of full-time employees enrolled in at least the MEC for each month. When you e-file with ExpressIRSForms, we’ll automatically fill out a virtual copy of Form 1094-C based on the information you enter and send it to the IRS with your 1095-C forms.

Form 1095-C Deadlines
As an employer, you’re probably already used to mailing out information returns (like W-2s) in January and again in February or March. The ACA forms are due around the same deadlines. Forms 1095-C are sent out at the beginning of each year to report on the previous year, and your employees will need to receive their copy by January 31st. In 2016, however, these forms will be due by February 1st, since January 31st is a Sunday.

If you’re paper filing, your Forms 1094- and 1095-C will need need to be filed with the IRS by the last day of February following the year in which the returns reference. And if you’re e-filing, these forms will need to be sent to the IRS by March 31st.

If you have any other questions regarding Form 1095-C, any of the other ACA forms, or the e-filing process, don’t hesitate to reach out to the ExpressIRSForms support team. We’re available by phone (704-839-2270) and live chat Monday through Friday from 9 a.m. to 6 p.m. EST. We’re also available 24/7 via email support at!

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