IRS 1094-C Explained

What is IRS 1094-C?

The IRS 1094-C is a form used by applicable large employers (ALEs) to report information about health insurance coverage offered to their employees. This form is crucial for compliance under the Affordable Care Act (ACA). The 1094-C serves as a transmittal form for the 1095-C forms, which provide detailed information on the health coverage provided to employees. Essentially, the 1094-C summarizes the employer’s health coverage data for the IRS.

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Purpose of IRS 1094-C

The primary purpose of the IRS 1094-C is to facilitate the reporting of health coverage information to ensure compliance with the ACA. ALEs must file this form annually to document the health insurance they offer their full-time employees. The data collected helps the IRS determine whether employers are complying with the ACA's employer mandate and allows them to assess penalties for non-compliance. This form also aids employees in understanding their health coverage options and responsibilities under the ACA.

Where is IRS 1094-C used and by whom?

The IRS 1094-C is primarily used by applicable large employers, which are businesses with 50 or more full-time equivalent employees. Here are typical use cases broken down by user groups:

1.

Large businesses: Corporations with multiple full-time employees must report on the health insurance coverage they provide.
2.

Non-profit organizations: Non-profits that meet the ALE threshold also need to file the form to report health coverage.
3.

Government employers: Government entities exceeding the employee threshold must also comply.

In each scenario, the form is used to demonstrate compliance with health coverage requirements and facilitate accurate tax reporting.

Step-by-step: how to fill out IRS 1094-C

Filling out the IRS 1094-C involves several steps, and using tools like pdfFiller can simplify this process. Here’s a step-by-step guide:

1.

Part I: Provide basic information about the employer, including name, address, and Employer Identification Number (EIN).
2.

Part II: Indicate whether the employer is an ALE member and specify the number of full-time employees for the reporting year.
3.

Part III: Report on health coverage offered, including the months when coverage was available to full-time employees.
4.

Sign and date: The form must be signed by an authorized person before submission.

By using pdfFiller, you can easily edit and fill out each section electronically, ensuring accuracy and submission readiness.

Who is required to complete IRS 1094-C?

Any employer classified as an applicable large employer (ALE) is required to complete the IRS 1094-C. This includes businesses with 50 or more full-time employees or a combination of part-time employees that equates to this number. Situations that may trigger the requirement include:

1.

Employers with 50 full-time employees or more, including full-time equivalent employees.
2.

Companies in a controlled group where combined employee totals meet the ALE criteria.

These employers must submit the form annually to confirm their compliance with health coverage regulations.

Information you need to complete IRS 1094-C

To accurately fill out the IRS 1094-C, you will need the following information:

1.

Employer’s name, address, and EIN.
2.

The total number of full-time employees for each month.
3.

Information on health coverage offered, including specific months when coverage was available.
4.

Details about the lowest-cost monthly premium for self-only coverage.
5.

Any other identifying information for the employer or coverage details as required by the IRS.

This data is essential for completing the form correctly and ensuring compliance with reporting requirements.

How to submit IRS 1094-C

Submitting the IRS 1094-C can be done through several channels, including:

1.

Electronically: Many employers choose to e-file through the IRS’s AIR system. Electronic submissions are often faster and easier than paper filings.
2.

By mail: If filing a paper form, send it to the address specified in the IRS instructions for 1094-C.

Important deadlines typically fall on the last day of February for paper filings and March 31 for electronic submissions. Always verify current deadlines to ensure timely filing.

When to update or refile IRS 1094-C

There are events that may require an employer to update or refile the IRS 1094-C. These include:

1.

Changes in employee status, such as the addition of new employees or changes in full-time status.
2.

Updates to the health coverage offered, including changes to plans or premiums.
3.

Any corrections to previously submitted information if errors are discovered after filing.

Employers should carefully monitor their circumstances to ensure their filings remain accurate and up-to-date.

What happens if you don’t file IRS 1094-C?

Failing to file the IRS 1094-C or submitting it incorrectly can lead to several consequences, such as:

1.

Penalties from the IRS, which can accumulate based on the number of days the form is late.
2.

Possible disqualification from health care tax credits.
3.

Increased scrutiny during IRS audits, which can lead to additional compliance issues.

To avoid these repercussions, it is crucial to ensure timely and accurate reporting with the IRS 1094-C.

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Frequently Asked Questions About the IRS 1094-C

What is the IRS 1094-C form?

The IRS 1094-C is a transmittal form used by applicable large employers to report information about their health insurance coverage to the IRS. This form is crucial for employers with 50 or more full-time employees, as it details the health insurance offered to employees, including minimum essential coverage. Submitting the IRS 1094-C correctly is essential to avoid penalties and ensure compliance with the Affordable Care Act.

Who needs to file the IRS 1094-C?

Employers that are classified as applicable large employers under the Affordable Care Act must file the IRS 1094-C. Typically, this includes companies with 50 or more full-time equivalent employees. Even if an employer does not have to file, it's best practice to understand the IRS 1094-C's requirements to stay compliant with IRS regulations.

How do I fill out the IRS 1094-C?

Filling out the IRS 1094-C requires gathering data about your workforce, health insurance coverage, and employee enrollment. You must provide seasonal workers' information if applicable and ensure accuracy throughout the reporting. Using pdfFiller can simplify this process, as it allows you to fill out the IRS 1094-C form electronically, saving time and reducing errors.

What information is required on the IRS 1094-C?

The IRS 1094-C requires specific information, including the employer's name, Employer Identification Number (EIN), address, and details about health coverage provided. You'll also need to report on full-time employee counts for each month, as well as any employees who received health coverage for a minimum essential coverage period. Accurate reporting on the IRS 1094-C helps ensure your compliance is met with IRS expectations.

When is the deadline for submitting the IRS 1094-C?

The IRS typically sets the deadline for submitting the IRS 1094-C as February 28 for paper submissions and March 31 for electronic submissions. It’s important to meet these deadlines to avoid penalties, which can be quite substantial for non-compliance. Using tools like pdfFiller can help manage submission timelines effectively, providing reminders and streamlined filing options.

What are the penalties for not filing IRS 1094-C?

Employers who fail to file the IRS 1094-C by the deadline can face penalties up to $250 per form, with a maximum penalty of $3 million for larger organizations. Additionally, the IRS could impose stricter penalties for inaccurate information reported on the form. Therefore, understanding and correctly submitting the IRS 1094-C is crucial to avoiding costly repercussions.

Can I e-file the IRS 1094-C?

Yes, you can e-file the IRS 1094-C. The IRS encourages electronic filing for large employers because it streamlines the process and reduces the risk of submission errors. By using pdfFiller, you can easily prepare and e-file your IRS 1094-C online, allowing for a quicker and more efficient filing experience.

What should I do if I made a mistake on my IRS 1094-C?

If you discover a mistake on your submitted IRS 1094-C, it's important to act quickly. You should file a corrected form as soon as you identify the error, indicating that this is a correction. pdfFiller provides templates for corrections, making it easier for you to submit the right information to stay compliant with IRS regulations.

How does the IRS 1094-C affect employee health coverage?

The IRS 1094-C plays a significant role in employee health coverage by ensuring that applicable large employers report to the IRS about the insurance they offer. This information is used to determine compliance with the Affordable Care Act. By understanding the implications of the IRS 1094-C, employers can enhance their benefits offerings and remain competitive in recruiting and retaining talent.

Where can I find resources to help with the IRS 1094-C?

Resources for the IRS 1094-C can be found on the IRS website, including instructions and detailed guidelines for filing. Additionally, utilizing platforms like pdfFiller offers various templates and tools to assist with form completion and submission. Accessing expert guidance helps simplify the process and ensures accurate filing, making compliance much easier.

Author:

by Iryna Marchuk

Lead Writer/Blogs Manager at airSlate

Disclaimer: This content is for informational purposes only. It is not legal or other professional advice. airSlate provides this material on an "as-is" basis and disclaims all representations, guarantees, or warranties, whether express, implied, or statutory, including but not limited to warranties of merchantability, fitness for a particular purpose, or accuracy.