1095 C 2021-2025 Form

What is the Form 1095-C Employer Provided Health Insurance Offer and Coverage

The Form 1095-C is a crucial document used by employers to report information about health insurance coverage offered to employees. This form is part of the Affordable Care Act (ACA) requirements, ensuring that employers provide adequate health coverage to their employees. It includes details such as the type of coverage offered, the months of coverage, and the employee's share of the lowest-cost monthly premium for self-only coverage. This information helps the IRS determine compliance with the ACA's employer mandate.

Steps to Complete the Form 1095-C Employer Provided Health Insurance Offer and Coverage

Completing the Form 1095-C involves several key steps:

• Gather necessary information about the employee, including their name, address, and Social Security number.
• Identify the type of health coverage offered during the year, including whether it was self-only or family coverage.
• Document the months the coverage was available to the employee.
• Calculate the employee's share of the lowest-cost monthly premium for self-only coverage.
• Ensure all information is accurate and complete before submission.

Legal Use of the Form 1095-C Employer Provided Health Insurance Offer and Coverage

The Form 1095-C serves as a legal document that employers must provide to employees and the IRS. It plays a significant role in demonstrating compliance with the ACA. Employers are required to issue this form to all full-time employees and to file it with the IRS. Failure to provide accurate information can result in penalties, making it essential for employers to ensure the form is completed correctly and submitted on time.

Filing Deadlines / Important Dates

Employers must adhere to specific deadlines regarding the Form 1095-C. Typically, the form must be provided to employees by January 31 of the following year. Additionally, it must be filed with the IRS by February 28 if submitting on paper, or by March 31 if filing electronically. Staying informed about these deadlines is crucial to avoid penalties and ensure compliance with federal regulations.

Who Issues the Form 1095-C

The Form 1095-C is issued by applicable large employers (ALEs), which are defined as employers with fifty or more full-time employees, including full-time equivalent employees. These employers are responsible for providing this form to their employees and the IRS to report the health coverage offered. Smaller employers may not be required to complete this form but should be aware of their obligations under the ACA.

Examples of Using the Form 1095-C Employer Provided Health Insurance Offer and Coverage

The Form 1095-C can be used in various scenarios, such as:

• Employees using the form to verify their health coverage when filing their taxes.
• Employers demonstrating compliance with ACA requirements during audits.
• Health insurance providers using the information to determine eligibility for premium tax credits.