Forms 1094-C And 1095-C

What Are Forms 1094-C and 1095-C?

Forms 1094-C and 1095-C are IRS documents used by Applicable Large Employers (ALEs) to report information about health coverage offered to employees. These forms are part of the Affordable Care Act (ACA) compliance requirements and are used to determine whether an employer is meeting its obligations under the Employer Shared Responsibility provisions.

Form 1095-C Overview

Form 1095-C is distributed to each full-time employee and provides detailed information about:

• The health insurance coverage offered (or not offered)
• The months coverage was available
• Whether the coverage met minimum essential coverage and affordability standards

This form helps employees complete their own tax returns and verify whether they are eligible for a premium tax credit.

Form 1094-C Overview

Form 1094-C is a transmittal form that accompanies the batch of 1095-C forms sent to the IRS. It summarizes:

• The total number of 1095-C forms submitted
• Information about the employer’s size and structure
• Whether the employer offered coverage to the required percentage of full-time employees

Who Must File Forms 1094-C and 1095-C?

Only Applicable Large Employers (employers with 50 or more full-time employees or full-time equivalents) are required to file these forms. Both forms must be submitted to the IRS annually, and copies of 1095-C must be provided to employees.

Why These Forms Matter

Accurate filing of Forms 1094-C and 1095-C is essential to avoid IRS penalties and demonstrate ACA compliance. These forms verify that the employer has met its obligation to offer affordable, minimum essential health coverage to eligible employees.

Tips for Accurate Filing

• Ensure employee data and coverage details are up to date
• File electronically if submitting more than 10 forms
• Distribute 1095-C copies to employees by the required deadline