What is the Difference Between Forms 1094-C and 1095-C?
IRS Forms 1094-C and 1095-C are filed by employers who offer health insurance under the Affordable Care Act. As an employee, you will only receive form 1095-C since the 1094-C is a cover sheet sent to the IRS. Learn more about what these forms include, filing requirements, and how to use them to file your tax return.
Key Takeaways
- Employers with at least 50 full-time workers are typically required to offer health insurance and send Form 1095-C to all employees eligible for coverage each year.
- The 1095-C provides employees with information about the coverage offered to them, the lowest-cost premium available, and the months the coverage was available.
- Employers are required to file Form 1094-C, as a "cover sheet" for the 1095-C forms, which provides information about the employer, the number of employees, and how many 1095-C forms are being sent.
- The IRS needs information from these forms to enforce the Affordable Care Act and determine if companies are making the required coverage available to their workers.
The role of the 1095-C
The Affordable Care Act requires employers with at least 50 full-time workers to offer their employees health insurance. And each year, those employers must send a statement—Form 1095-C—to all employees eligible for coverage.
The statement provides details about:
- coverage offered to the employee
- lowest-cost premium available to the employee
- months of the year when the coverage was available
All employees eligible for coverage should get a 1095-C, regardless of whether they actually participate in the employer’s health plan. The forms became mandatory with the 2015 tax year.
TurboTax Tip:
Employers typically have to send 1095-C forms to employees by the end of January each year, and information to the IRS by the end of February or March, depending on whether filed electronically or on paper. Electronic filing is required for employers with 250 or more forms to send.
Where the 1094-C fits in
Employers don’t send 1095-C forms just to their workers. They also have to send them to the IRS. When they do, they also file Form 1094-C. This form is essentially a “cover sheet” for the 1095-C forms. It provides information about:
- employer—including address, phone number, employer identification number
- number of employees
- name of a contact person
- how many 1095-C forms are being sent
Why the IRS needs the 1095-C
The IRS needs information from 1095-C forms because it has a central role in enforcing the Affordable Care Act. Companies that are required to offer insurance but don’t, may have to pay a penalty. By collecting 1095-C forms, the IRS can track who is and isn't making coverage available to workers.
Meanwhile, the health care law also requires most people to have health insurance, and it provides financial assistance to some people who do not have an opportunity to get coverage through an employer. Information from the 1095-C tells the IRS who has access to employer-sponsored health insurance and who doesn’t.
Filing information for employers
According to the IRS, employers must send employees their 1095-C forms by the end of January each year. Information must be sent to the IRS by the end of February if paper filed, or by the end of March if the forms are filed electronically.
Employers with fewer than 250 forms to send to the IRS can file paper 1095-C forms, accompanied by a paper 1094-C. They can also file electronically. Employers with 250 or more forms must transmit the information electronically.
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