What Employers Should Know about IRS Form 1095-C?

As mentioned earlier, Form 1095-C is filed by ALEs. This includes,

• Self-insured employers who have more than 50 employees - should complete all the parts of
  IRS Form 1095-C.
• Fully Insured employers who have more than 50 employees - should complete parts I and II of
  IRS 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

Click here to know more about Form 1095-C filing instructions.

The IRS has released a final version of the Form 1095-B and 1095-C for 2024 ACA reporting in the month of October, which clearly indicates that there are no changes or additions to the 1095 codes.

While there were no major changes to ACA forms and their respective ACA codes during the tax year, the IRS did update the ACA affordability percentage for the 2024 tax year.

• The affordability percentage for the 2024 tax year is 8.39%.
• The IRS reduces the e-filing threshold to 10 returns. i.e., if you are filing 10 or more returns, it is mandatory to e-file them.
• Also, the IRS has increased the penalty amount for employers and health coverage providers who fail to complete their ACA reporting on time. Check out the updated penalty amounts.

Employers can file Form 8809 with the IRS for an automatic 30-day extension of time to file their 1095-C forms.

The extension form may be submitted on paper or electronically. No signature or explanation is required for the extension.

The Form 8809 extension must be filed on or before the 1095-C filing deadline, otherwise the employer is not eligible for a 30-day extension.

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

Employers can file their ACA Forms 1095-C electronically or submit paper copies to the IRS. However, if the employer is filing 250 or more forms, they are required to e-file.

Regardless of the size of the organization, the IRS prefers that employers file electronically. This allows the IRS to process the forms at a faster rate and provide status updates for the forms.

In conclusion, electronic filing is the most accurate and secure filing method.
E-file IRS Form 1095-C Now.

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

If you need a complete solution for meeting your organization’s ACA Form 1095 filing requirements, choosing an ACA reporting vendor is ideal.

ACAwise is an ACA reporting solution that provides a full-service option for meeting your ACA reporting requirements.

ACAwise’s end-to-end solution allows you to e-file your ACA Form 1095-C with the IRS and required state(s) as well as distribute employee copies. ACAwise’s team of experts has experience with special reporting scenarios, including ICHRA, COBRA, rehires, terminations, and more.

ACAwise helps to e-file your ACA Form 1095-C with the IRS, State and distribute the 1095 copies to your employees on-time. ACAwise is equipped to handle special scenarios such as ICHRA, COBRA, Rehire, terminated, etc.

We provide two different reporting services for you to choose from, based upon your requirements.

• ACA Core
• ACA Elite