Form 1095-C is a tax form that employers with 50 or more full-time employees (including full-time equivalent employees) must provide. This form is part of the Affordable Care Act (ACA) requirements and reports information about the health insurance coverage offered to each employee. It details whether the coverage meets the minimum value standard and is affordable, as defined by the ACA. The form also indicates which months the employee was eligible for the coverage during the year. This information is crucial for the IRS to verify compliance with the ACA’s employer mandate and help employees determine eligibility for premium tax credits when purchasing coverage through the Health Insurance Marketplace.
The purpose of Form 1095-C is dual: it assists the IRS in enforcing compliance with the employer mandate. It provides employees the information to make informed decisions about their health insurance options. Employees use the data from Form 1095-C to ascertain if their employer offered them adequate and affordable coverage. If not, they may be eligible for premium tax credits if they purchase insurance through the Marketplace. This form is pivotal in ensuring that both employers fulfill their obligations under the ACA and that employees receive the information required to seek out the most beneficial and cost-effective health insurance options.
Other IRS Forms for Business
The IRS makes employers file different forms containing various financial information about their employees. Read about other IRS forms for employers you might need.
There are two deadlines for the employers to submit this form. One states the last day when workers may receive the document; another is for submission to the IRS.
Each employee must get their copy no later than March 2 (the next business day when March 2 falls on a weekend or legal holiday). The last day of February is the Service’s deadline if you file your form by mail. If you decide to submit it online, your deadline is March 31.