Form 1095-C An Overview: Due Date, Filing Methods, & Mailing Address

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ACA Form 1095-C Filing Instructions - An Overview

- Updated October 29, 2020 - 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.

What is the purpose of ACA 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 ACA 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 ACA Form 1095-C.
  • Fully Insured employers who have more than 50 employees should complete part I & II of ACA
    Form 1095-C.

Information required to file ACA 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

New Requirements for reporting ACA Form 1095-C for 2021

New regulations regarding ICHRAs have been introduced in the past year and these plans are increasing in popularity among employers.

An ICHRA is an employer-sponsored reimbursement plan, which allows employees to purchase their health insurance plan either privately or on the open market. In turn, the plan reimburses the employee to help them cover a portion of their medical costs and/or premiums.

To better track these plans and ensure the affordability for employees, the IRS has added new lines & codes to the Form 1095-C to report this information.

  • Employee’s age on January 1
  • Plan Start month
  • Zip code by month (Line 17)
  • There are now eight new codes (1L - 1S) in Line 14 to report the method they used to determine the affordability of ICHRA Coverage.

Click here to know more about the 2021 ACA Reporting Requirements.

What is the deadline to file ACA Form 1094 and 1095-C

An ALE should furnish an ACA Form 1095-C to each of its full-time employees by March 2, 2021, for the 2020 calendar year.

An ALE should file ACA Forms 1094-C and 1095-C by March 31, 2021, if you choose to file electronically, and the Form should file by February 28, 2021, if filing on paper.

Click here to know the State filing deadlines.

How to file an Extension of time to file ACA 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 ACA 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 for 2021

As for 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 ACA 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 ACA Form 1095-C Now

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

Where do I mail ACA 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 2021 ACA Form 1095-C Reporting Requirements

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

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