ACA Compliance
IRS Reporting Requirements
Applicable Large Employers must file annual reports with the IRS confirming that they offered qualifying coverage to eligible employees. These forms — 1094-C and 1095-C — are due each year and must be provided to employees by a specified date. Errors or missed filings can trigger IRS inquiries and penalty assessments.
ACA Compliance
What You Need to Know About IRS Reporting Requirements
Form 1095-C
The 1095-C is provided to each full-time employee and reports the coverage offered, the employee's share of the lowest-cost monthly premium, and the months coverage was available. Employees use it to verify they had coverage and may need it for their tax filing.
Form 1094-C
The 1094-C is the transmittal form filed with the IRS summarizing the employer's coverage offer across all employees. It's filed along with all 1095-Cs and must accurately reflect the employer's ALE status and coverage offer for the reporting year.
Deadlines and Penalties
Forms must be furnished to employees by January 31 and filed with the IRS by February 28 (paper) or March 31 (electronic). Late or incorrect filings carry per-form penalties that can accumulate quickly for employers with large workforces.