Instructions for Filling Out Form 1095-C

Instructions for Filling Out Form 1095-C

Written by 
Pilot Team
July 28, 2023
Instructions for Filling Out Form 1095-C

This document offers comprehensive guidance on completing 1095-C for 2023, aimed at helping employers accurately report health coverage information for their employees. It covers various aspects, including general and specific instructions, definitions, and privacy notices. In this article, we'll provide information on Form 1095-C and a step-by-step guide on how to fill it out.

What is Form 1095-C?

Form 1095-C is a document used by employers to report information about health insurance coverage offered to their employees. Specifically, employers with 50 or more full-time employees (including full-time equivalent employees) in the previous year are required to use Forms 1094-C and 1095-C to report information under sections 6055 and 6056 about offers of health coverage and enrollment in health coverage for their employees. The purpose of Form 1095-C is to help determine whether an Applicable Large Employer (ALE Member) owes a payment under the employer shared responsibility provisions under section 4980H, as well as to determine the eligibility of employees for the premium tax credit. ALE Members that offer employer-sponsored, self-insured coverage also use Form 1095-C to report information about individuals who have minimum essential coverage under the employer plan.

Who Must File Form 1095-C?

Applicable Large Employer Members (ALE Members) are required to file Form 1095-C. An ALE Member is typically a single person or entity that is an Applicable Large Employer or, if applicable, each person or entity that is a member of an Aggregated ALE Group. Generally, an Applicable Large Employer is an employer with 50 or more full-time employees (including full-time equivalent employees) in the previous year. ALE Members must file one or more Forms 1094-C and a Form 1095-C for each employee who was a full-time employee for any month of the calendar year. They are also required to furnish a copy of the Form 1095-C (or a substitute form) to the employee.

Form 1095-C Tax Filing Deadlines and Due Dates

  • Filing with the IRS:
  • Paper filing due date: February 28, 2024
  • Electronic filing due date: April 1, 2024
  • Furnishing to Employees:
  • The due date for furnishing Form 1095-C to employees is automatically extended from January 31, 2024, to March 1, 2024.

Form 1095-C Late Payment Penalty

While there isn't a specific "late payment penalty" for Form 1095-C, employers may face penalties for failing to file correct information returns (Form 1094-C) and to furnish correct statements (Form 1095-C) by the due dates. The penalties for noncompliance can vary, and the specific amounts or conditions under which they apply are typically detailed in the sections discussing the requirements for filing and furnishing these forms, as well as any applicable relief or exceptions.

Step-by-Step Instructions for Form 1095-C

Step by step instructions for filling out Form 1095-C:

  1. Employee: Enter the employee's name, Social Security Number (SSN), and address.
  2. Applicable Large Employer Member (Employer): Fill in the employer's name, Employer Identification Number (EIN), and contact information.
  3. Employee Offer of Coverage: For each month, enter the code that represents the offer of coverage made to the employee, the employee's share of the lowest cost monthly premium for self-only minimum essential coverage providing minimum value, and any safe harbor codes applicable.
  4. Covered Individuals: If the employer offers a self-insured plan, list each individual (including the employee, if enrolled) covered under the plan, their SSN or date of birth, and the months they were covered.

How to Submit Form 1095-C

To submit Form 1095-C, first determine if you are an Applicable Large Employer (ALE) required to file based on the number of full-time employees. Gather the necessary information, including employee data and coverage offered, and complete Forms 1094-C and 1095-C according to the specific instructions. File the forms electronically if submitting 10 or more, or by mail if submitting fewer. Furnish copies of Form 1095-C to your employees by the required deadline and retain records of the forms and correspondence with the IRS for at least three years.

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