Form 1094-C is the IRS transmittal document employers use to send employee health insurance reporting with Forms 1095-C showing coverage offers under ACA rules, helping businesses stay compliant.
Form 1094-C – Transmittal of Employer-Provided Health Insurance Information (paper). Contact +1-866-513-4656 for expert support with filing.
Form 1094-C ensures that the IRS receives a clear summary of all health coverage offers your business provides to employees. It works alongside Form 1095-C, which details each employee’s coverage throughout the year. Together, these forms help your business stay compliant with Affordable Care Act (ACA) requirements.
Introduction
Handling IRS forms may feel overwhelming, but Form 1094-C is simply a transmittal form that summarizes employee health coverage reporting for the IRS. It is used in conjunction with Form 1095-C to demonstrate compliance with the ACA employer mandate.
According to the IRS, Form 1094-C acts as a cover sheet for all Forms 1095-C submitted by an employer. It includes summary information such as total employees and coverage offerings. Filing this form accurately ensures the IRS has clear and complete data on employer-provided health insurance.
Proper organization reduces stress during tax season. The form also helps employees and the IRS verify that coverage was offered correctly. Using guidance from IRS resources or professionals like BooksMerge ensures accuracy and compliance.
Who Must File Form 1094-C?
Form 1094-C is required for Applicable Large Employers (ALEs). ALEs are defined as businesses with 50 or more full-time or full-time equivalent employees in the previous year. If your company meets this threshold, filing Form 1094-C is mandatory.
Businesses with fewer than 50 full-time employees generally do not file Form 1094-C. However, self-insured employers with fewer employees may still have reporting duties under ACA provisions using Form 1095-C and Form 1094-B.
How It Works With Form 1095-C
Form 1094-C serves as a summary, while Form 1095-C reports each employee's coverage. Employees receive Form 1095-C, but only the IRS receives Form 1094-C. This allows the IRS to verify coverage offers and compliance with ACA rules.
The IRS uses this information to ensure employers provide minimum essential coverage and to determine whether employees qualify for premium tax credits.
Key Form 1094-C Details
- Employer name and Employer Identification Number (EIN)
- Total number of Forms 1095-C included
- Monthly count of full-time employees
- Certification of coverage offered
- Aggregated ALE group details, if applicable
Accurate completion of these details prevents IRS inquiries and helps ensure your business avoids penalties for non-compliance. Remember to cross-check totals with Forms 1095-C.
Trusted IRS Resources
- About Form 1094-C – IRS Form 1094-C Overview
- Instructions for Forms 1094-C and 1095-C – IRS Instructions for 1094-C and 1095-C
- Questions and Answers for Employers – IRS Q&A on Form 1094-C and 1095-C
- Reporting by Providers of Minimum Essential Coverage – IRS Guidance on MEC Reporting
Paper Filing Deadlines
For paper filings, Form 1094-C and Forms 1095-C must reach the IRS by February 28 of the year following the reporting year. Electronic filers have until March 31. Early preparation reduces the risk of late filing penalties.
Why It Matters
- Employer Responsibility: Ensures ALEs meet ACA coverage offer obligations.
- Employee Tax Credits: Correct reporting allows employees to claim or verify premium tax credits.
Accurate filing reduces the risk of penalties and strengthens your compliance record. Form 1094-C is not just paperwork; it protects your business and your employees.
Helpful Tips for Filing
- Start early and gather all employee coverage data in advance.
- Check EIN and employee counts for consistency.
- Partner with experts like BooksMerge for review and filing: +1-866-513-4656.
- Keep copies of all filings for at least three years.
Conclusion
Form 1094-C is a critical component of ACA compliance for businesses with 50 or more full-time employees. It summarizes coverage offers and supports Form 1095-C reporting. Accurate and timely filing prevents penalties and protects employees’ records.
For expert assistance, BooksMerge can guide employers through preparation and filing. Contact +1-866-513-4656 for professional support and peace of mind.
Frequently Asked Questions
1. Who must file Form 1094-C?
Applicable Large Employers with 50 or more full-time employees must file Form 1094-C. Aggregated full-time equivalents also count.
2. Do employees receive Form 1094-C?
No. Form 1094-C is only sent to the IRS. Employees receive Form 1095-C for their records.
3. What happens if I miss the filing deadline?
Missing deadlines can lead to penalties. Early preparation and expert assistance help prevent late filings.
4. Can I file electronically instead of on paper?
Yes. Electronic filing is required for businesses with 10 or more returns and extends the deadline to March 31.
