1095 C Codes Explained 2023-2025 Form

What is the 1094 C?

The 1094 C is a crucial form used for reporting employer-provided health insurance coverage under the Affordable Care Act (ACA). It serves as a transmittal form that summarizes information reported on the 1095 C forms, which detail the health coverage offered to employees. Employers with fifty or more full-time employees or equivalents must file this form with the IRS to demonstrate compliance with the ACA's employer mandate. Understanding the 1094 C is essential for businesses to ensure they meet federal requirements and avoid potential penalties.

Key elements of the 1094 C

The 1094 C contains several key elements that employers must accurately complete. These include:

• Employer Information: This section requires the employer's name, address, and Employer Identification Number (EIN).
• Applicable Large Employer (ALE) Status: Employers must indicate whether they qualify as an ALE based on their workforce size.
• Summary of Health Coverage: This part summarizes the total number of 1095 C forms being submitted and the number of full-time employees.
• Contact Information: Employers must provide contact details for someone who can answer questions about the form.

Accurate completion of these elements is vital for compliance and to avoid IRS penalties.

Steps to complete the 1094 C

Completing the 1094 C involves several important steps:

1. Gather Required Information: Collect all necessary data, including employee health coverage details and employer identification numbers.
2. Fill Out the Form: Carefully enter the required information in each section of the 1094 C, ensuring accuracy.
3. Review for Errors: Double-check the form for any mistakes or omissions that could lead to complications.
4. Submit the Form: File the completed 1094 C with the IRS by the designated deadline, either electronically or by mail.

Following these steps will help ensure a smooth filing process and compliance with ACA regulations.

Filing Deadlines / Important Dates

Filing deadlines for the 1094 C are crucial for compliance. Generally, employers must submit the form by:

• February 28: If filing by paper.
• March 31: If filing electronically.

Employers should also be aware of any extensions that may apply, as well as the importance of timely filing to avoid penalties. Keeping track of these dates is essential for maintaining compliance with IRS regulations.

IRS Guidelines

The IRS provides specific guidelines for completing and submitting the 1094 C. These guidelines include:

• Instructions on how to fill out each section of the form.
• Details on the filing process, including electronic filing requirements.
• Information on penalties for non-compliance and how to avoid them.

Employers should familiarize themselves with these guidelines to ensure accurate and timely submissions, helping to mitigate any risks associated with non-compliance.

Penalties for Non-Compliance

Failure to file the 1094 C accurately or on time can result in significant penalties. The IRS may impose fines for each form that is late or incorrect. The penalties can vary based on the size of the employer and the length of the delay. Understanding these penalties is essential for employers to prioritize compliance and avoid unnecessary costs.