What Employers Should Know about IRS Form 1095-C?

In this article we will cover the following points:

  • An overview of Form 1095-C
  • The deadline for filing Form 1095-C
  • How To file Form 1095-C
  • The Benefits of Choosing ACAwise to meet your IRS Form 1095-C Deadline

ACAwise, a customized ACA Reporting solution, generates ACA Forms with Line 14, 16 codes and e-files them with the IRS / State and distributes employee copies. Learn More

IRS Form 1095-C - An Overview

- Updated August 08, 2022 - 8.00 AM by Admin, ACAwise

When the Affordable Care Act was passed, the IRS designed Section 6056 of the Internal Revenue Code as a way to gather information on the health insurance coverage that ALEs offered to their employees.

Under IRC Section 6056, the IRS requires ALEs to file ACA Forms 1095-C and 1094-C to the IRS and distribute copies of ACA Forms to employees.

The following instructions summarize what employers must know about the ACA Form 1094-C and Form 1095-C filing requirements.

Table Of Content :

What is the purpose of IRS Form 1095-C?

The ACA Form 1095-C, Employer-Provided Health Insurance Offer and Coverage is used by applicable large employers (Employers with 50+ employees) to report their employees’ health coverage information with
the IRS.

The IRS uses the information on the Form 1095-C to determine the following:

  • 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.
  • Eligibility of employees to purchase premium tax credit.

Who must file IRS Form 1095-C?

ALEs must report the health coverage information to the IRS and employees about individuals who have minimum essential coverage under the employer plan.

  • Self-insured employers who have more than 50 employees should complete part III of IRS Form 1095-C.
  • Fully Insured employers who have more than 50 employees should complete part I & II of
    IRS Form 1095-C.

Information required to file IRS Form 1095-C

The following information is required when filing ACA Form 1095-C

Part I, Employee and Applicable Large Employer

  • Employee’s Basic Information such as Name, SSN, Address
  • Employer’s Basic Information such as Name, EIN, Address

Part II, Employee Offer of Coverage

  • Plan Start Month, Age
  • Indicator codes for Offer of coverage
  • Safe Harbor Codes to identify whether the coverage is affordable

Click here to learn more about Offer of coverage & Safe Harbor Codes.

Part III, Covered Individuals

  • Employers who provided self-insured coverage must only complete Part III for employees who enrolled in the self-insured coverage
    • Covered individuals details such as Name, SSN, month of coverage offered

Click here to know more about Form 1095-C filing instructions.

Updates on 2023 IRS Form 1095-C Filing

The IRS has released a final version of the Form 1095-B and 1095-C for 2022 ACA reporting in the month of July, which clearly indicates that there are no changes or additions to the 1095 codes.

Last year, the IRS added new ACA codes (1T - 1U) in Line 14 to report the method they used to determine the affordability of ICHRA Coverage.

What is the deadline to file IRS Form 1095-C?

An ALE should furnish an ACA Form 1095-C to each of its full-time employees by March 02, 2023, for the 2022 calendar year.

An ALE should file ACA Forms 1094-C and 1095-C by March 31, 2023, if you choose to file electronically, and the Form should file by February 28, 2023, if filing on paper.

Click here to know the IRS and State filing deadlines

How to file an Extension of time to file IRS Form 1095-C?

An ALE can get an automatic 30-day extension of time to file by filing Form 8809.

The extension form may be submitted on paper, or electronically. No signature or explanation is required for the extension.

However, you must file Form 8809 on or before the original deadline of the returns in order to get the
30-day extension.

What are the penalties for failure to file or furnish
IRS Forms 1095-C?

The penalty for filing & furnishing ACA Forms with an incorrect ACA information return is $280 for each return for which the failure occurs, with the total penalty for a calendar year not exceeding $3,392,000.

Click here to learn more ACA penalties.

Relief Regarding Form 1095-C

As for IRS Form 1095-C, the IRS will not impose a penalty for failure to furnish it in regards to any employee that is enrolled in an ALE member’s self-insured health plan who is not a full-time employee for any month of 2020. Employers must meet this condition by completing Part 1 of the Form 1095-C and indicating Code 1G for this employee in the IRS reporting. See Notice 2020-76 for more information on reporting penalties.

Remember, The 2020 section 6055 furnishing relief in no way affects the assessment of penalties associated with the filing requirement or the deadline to file with the IRS the 2020 Forms 1094-C or 1095-C,
as applicable.

How to File IRS Form 1095-C?

The ACA Form 1095-C can be filed either electronically or on paper with the IRS.

However, the IRS encourages organizations to file electronically. By E-filing, the IRS can process your returns more quickly, and you are also able to learn the status of your submission instantly.

Choose an Electronic filing method for quick, secure, and more accurate filing. E-file IRS Form 1095-C Now.

However, If you choose to paper file the ACA Form 1095-C, download the IRS Form 1095-C, fill in the necessary details and then send it to the IRS by the address mentioned below.

Where do I mail IRS Form 1095-C?

Business Location Mailing Address
Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia
Department of the Treasury
Internal Revenue Service Center Austin,
TX 73301
Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming
Department of the Treasury
Internal Revenue Service Center
P.O. Box 219256
Kansas City, MO 64121-9256

Meeting your 2023 IRS Form 1095-C Reporting Requirements

Choose the right ACA Reporting vendor to take care of e-filing your IRS Form 1095-C. ACAwise is a comprehensive ACA reporting solution provider that can help you to get started with your ACA reporting now.

ACAwise helps to e-file your ACA Form 1095-C with the IRS, State and distribute the 1095 copies to your employees on-time. ACAwise is equipped to handle special scenarios such as ICHRA, COBRA, Rehire, terminated, etc.

We provide two different reporting services for you to choose from, based upon your requirements.

Interested in ACAwise?

Send us your requirements to [email protected] or give us a call at (704)-954-8420.

You can Sign Up Now and add your basic business details to begin your ACA Reporting.

One of our ACA Representatives will contact you with a free consultation and quote.

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