FORMS 1094/1095 & Filing
Companies file both Form 1094 and 1095 to record the employer-provided health insurance coverage. The Affordable Care Act (ACA) requires applicable large employers (ALEs) – companies with 50+ full-time employees or full-time equivalents – to offer employees health care coverage.
Employers who are subject to the ACA employer mandate must provide all full-time employees with the IRS Form 1095-C in early March to document group health coverage they were offered or enrolled in during the prior calendar year. They must also electronically report all 1095-C forms with a 1094-C cover sheet to the IRS by the end of March.
Form 1094
Purpose: This reporting form informs the IRS about the employer’s health insurance coverage.
Deadline: Per the IRS, you must file the paper version of Form 1094-C by February 28 and March 31 if filing electronically. As with all tax documents, you’ll file information about the previous calendar year (so in 2025, you’ll file the information for the year 2024).
1094-B vs. 1094-C:
1094-B is submitted no matter your company size if you provide fully insured health coverage. But it is completed and submitted by your provider.
Filing Form 1094-C is a requirement for ALEs.
Form 1095
Purpose: Form 1095 informs the IRS and covered employees about employee eligibility for tax credits.
Deadline: Similar to Form 1094, ALEs must file Form 1095 on or before February 28 if filing on paper and March 31 if filing electronically.
1095-B vs. 1095-C:
If you provide fully insured health coverage to your employees, no matter the size of your business, your insurance carrier will complete 1095-B. ALEs are required to file Form 1095-C. If you’re an ALE, your enrolled employees will receive Forms 1095-B and 1095-C.
Small employers who offer self-funded plans may furnish 1095-Bs to full-time and part-time employees who enrolled in the self-funded group health plan at any time in the prior calendar year.
E-Filing
Under the Affordable Care Act (ACA), self-insured companies and businesses that provide health insurance to their employees must submit information returns to the IRS to report on individual health insurance coverage. If you have 10 or more information returns, you must submit them electronically.
Form 8508 Requirements
Form 8508 is the Application for a Waiver from Electronic Filing of Information Returns. Employers who are required to file information reporting forms electronically can file Form 8508.
Must be submitted at least 45 days before the due date of the returns (e.g. February 15 for March 31 due date).
Failure to timely file electronically or to file Form 8508 may result in penalties over $300 (indexed each year) per return.
Complete a Form 8508 for each Taxpayer Identification Number (TIN). You may use one Form 8508 for multiple types of forms. After evaluating your request, an approval or denial letter will be issued.
Electronic Forms to IRS: 1095/1094
Electronic information reporting forms (1094-C & 1095-C) are due to the IRS. Generally, an entity required to file more than 10 aggregate IRS returns must file electronically, unless the entity filed a Form 8508 by February 15.
You can submit ACA information returns electronically with the AIR system.
Small employers with self-insured plans who must file electronically must file 1094-Bs and 1095-Bs with the IRS by March 31st.
Penalties
As of 2022, the fee is $280 for each unfiled or incorrect form.
These penalties can be applied twice to the same return. For example, if you don't provide your employee with a 1095-C and you fail to provide the IRS with a copy, you will incur a total penalty of $560.