How to File and Distribute Form 1095-C

With the deadline for filing and distributing 1095-C forms approaching, staying organized and compliant is essential for both employers and employees. This guide combines key information and frequently asked questions to ensure you’re prepared for the upcoming tax season.

What Is Form 1095-C?

Forms 1094-C and 1095-C is a critical document required under the Affordable Care Act (ACA). Employers with 50 or more full-time equivalent employees—known as Applicable Large Employers (ALEs)—must provide this form to communicate health insurance information to the IRS. It confirms whether the employer offered affordable, minimum essential coverage to employees and helps employees verify their coverage during tax filing.

Key Deadlines for Form 1095-C in 2024

• Employee Distribution Deadline: March 2, 2024

• IRS Filing Deadlines:

  • Paper submissions: February 28, 2024.

  • Electronic submissions: March 31, 2024 (mandatory for employers filing 10 or more forms).

How to File and Distribute Form 1095-C: Step-by-Step Guide

1. Prepare Employee Information
   Ensure that all employee details, such as Social Security Numbers, coverage months, and dependent information (if applicable), are accurate. Verify records to avoid errors or delays.

2. Choose a Filing Method
   Employers filing fewer than 10 forms may mail them to the IRS, but electronic filing is mandatory for those filing 10 or more forms. Use approved e-filing software or an IRS-certified provider to simplify the process.

3. Verify Distribution Methods
   Decide how you will distribute forms to employees. If using electronic distribution, obtain written consent from employees. For mailing or hand-delivery, confirm the correct addresses to prevent misdelivery.

4. Submit the Forms

   • To Employees: Ensure forms are distributed on or before the March 2, 2024, deadline.

   • To the IRS: File by February 28, 2024, if submitting paper forms, or March 31, 2024, if filing electronically.

5. Keep Records
   Retain copies of filed forms and records of distribution for at least three years, as required by the IRS.

Acceptable Methods for Distributing Form 1095-C

Employers can distribute 1095-C forms via mail by sending forms directly to employees' home addresses. Hand delivery is an option if your organization operates in person, allowing forms to be handed out directly to employees.

Alternatively, electronic delivery is permissible if employees have consented to receive forms electronically. In hybrid or remote work settings, ensure employees have timely access to their forms, whether via secure electronic platforms or reliable mailing services.

Filing Form 1095-C with the IRS

Employers must file forms electronically if they are submitting 10 or more forms, as mandated by new IRS regulations. Electronic submission is strongly recommended for its speed, security, and efficiency.

For employers filing fewer than 10 forms, mailing remains an option, though it involves additional risks such as loss or damage. If mailing forms, ensure proper handling by using first-class mail, avoiding folding forms, and using flat envelopes. Label packages clearly if sending multiple forms. Employers can find specific IRS mailing addresses based on their location on the IRS website.

FAQs About Form 1095-C

As your employees begin receiving tax forms, they may have questions regarding form 1095-C and what to do with it. Here are some of the most common questions to consider: 

Q: What information is on Form 1095-C?

The form includes details about the employer’s health insurance offering, the employee’s required contribution, and whether coverage was provided. It is used by the IRS to confirm ACA compliance and by employees for tax purposes.

Q: Who receives a Form 1095-C?

Full-time employees and anyone enrolled in the employer’s health plan will receive this form. Employers with more than 50 full-time equivalent employees are required to issue it.

Q: When will I get the 1095-C?

Employees will receive their 1095-C on or before March 2 as per the extended deadline. This deadline applies to all employers.

Q: How will I receive my Form 1095-C? 

The form may be delivered via mail, hand-delivery, or electronically if the employee has given prior consent.

Q: Do I need to wait for my Form 1095-C to file my income tax return? 

While the form is not mandatory to file your taxes, it is useful for ensuring accuracy, especially if you are claiming a premium tax credit or have a gap in coverage.

Q: What should I do with Form 1095-C? 

Employees should keep the form for their records as it provides proof of coverage and can be helpful during tax filing or in the case of audits.

Q: Why did I get more than one Form 1095-C? 

If you had multiple employers, changed coverage, or had family members with different coverage providers, you might receive more than one form.

Q: What if I had gaps in coverage? 

Employees with coverage gaps should be aware that while there is no federal penalty, some states may impose penalties. Examples include California, New Jersey, and Massachusetts, among others.

Q: Where can I learn more about Form 1095-C? 

Additional information is available on the IRS’s official website under ACA compliance resources.