Form 1095-C Filing Instructions for Employers
When the Affordable Care Act was passed, the Internal revenue Service (IRS) designed Section 6056 of the Internal Revenue Code
to gather information on the health insurance coverage that Applicable Large Employers (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.
IRS Form 1095-C provides information regarding employer-provided health insurance coverage – or offers of coverage. It may also
detail the months of coverage the employee and their spouse and/or eligible dependents had during each month.
The IRS uses the information on 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?
The Affordable Care Act (ACA) requires every ALE (employers with 50+ more full-time equivalent employees) to report the offered
health coverage information to the IRS and furnish the copies to the employees who have enrolled in the minimum essential coverage
under the employer plan.
On the other hand, regardless of employee size, self-insured employers must complete part III of ACA Form 1095-B/C and submit
it to the IRS and furnish the copies to the employees.
If ALEs offering fully insured plans to full-time employees must complete the Part -I & part-II of ACA form 1095-C.
To know whether you’re an Applicable Large Employer to meet the ACA reporting requirements, you can use our
ALE Status Calculator to determine your ALE status.
New Requirements for reporting ACA Form 1095-C for 2021
New regulations regarding Individual Coverage Health Reimbursement Arrangement (ICHRA) have been effective from
January 1, 2020, and these plans are increasing in popularity among employers.
An ICHRA is an employer-sponsored health 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 understand the employer offered ICHRA plan and to ensure its affordability for employees, the IRS has added
new lines & codes to the Form 1095-C for employers to report information related to ICHRA.
Employee’s age on January 1
Plan Start month
Zip code by month (Line 17)
There are now eight new codes (1L - 1S) added in Line 14 to report the method the employers 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 enrolled in the plan 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. The Form should be filed by
February 28, 2021, if filing on paper.
State Individual Mandate - ACA Reporting Requirements for 2021
After eliminating federal individual mandates under the Affordable Care Act (ACA) by Congress, several states have
begun implementing
the individual mandate at the state level. Employers now have to file their employees’ offer of health coverage information
to the state and
furnish copies to their employees annually.
Click here to know the State filing deadlines.
Visit https://www.acawise.com/state-individual-mandate-aca-reporting-requirements to know more about state individual mandate
reporting requirements.
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
check 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
Meeting your 2021 ACA Form 1095-C Reporting Requirements
Choose the right ACA Reporting vendor to take care of e-filing your ACA Form 1095-C with the IRS.
ACAwise is one of the comprehensive ACA reporting solution providers that helps you to meet your
ACA reporting requirements before the deadline
and save you from the risk of unwanted penalties.
We help you to e-file your ACA Form 1095-C with the IRS, State and distribute the 1095 copies to your
employees on-time. ACAwise also handles
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 support@acawise.com 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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