The biggest misunderstanding we run into when talking to employers about Affordable Care Act (ACA) reporting is over who should get a 1095-C.
The buzz around this new IRS form, which often is called the ACA version of a W-2, leaves most employers believing that every employee who gets a W-2 must also get a Form 1095-C.
A 1095-C is the employer’s statement of the availability of health care coverage at the workplace. It must go to every employee who is eligible for company-sponsored health insurance – even if they waive it, and to every employee who is on a company-sponsored plan.
Identifying which employees get a Form 1095-C can often be as intricate a process as printing the form itself.
It’s only these employees who need a 1095-C. Remember that, to comply with the reporting requirement of the ACA individual mandate, employees have their own IRS paperwork. So to file their individual tax returns accurately, they need a copy of what their employer is filing with the company’s ACA returns.
For some employers, the task of figuring out which employees to give this form to can be tougher than the printing of the form itself.
To help you understand and sort through this new compliance burden, we have the ACA-fluent team that can boil down the must-knows of 1095-C production to a 3-minute, high-level video.