I’ve come across the term “1095-C” related to employee communication in a business context. Can someone explain this form, what information it provides, and why it’s essential for employees and employers? How is it used in the broader context of business operations and compliance?
I’d appreciate a breakdown in simple terms for those of us who might not be familiar with these details.
Form 1095-C is a document employers provide to their employees that summarizes the health insurance coverage offered to them. It’s part of the reporting requirements under the Affordable Care Act (ACA) and serves several important purposes:
Verification of Insurance Coverage: This shows whether an employer offered health insurance to its employees, which is crucial for complying with the ACA’s employer mandate.
Employee Information: It contains information on the type of health insurance coverage offered, including the coverage period and whether it was affordable according to ACA standards.
Tax Filing: Employees may need this form when filing their tax returns to demonstrate they had health insurance coverage or to understand their eligibility for the Premium Tax Credit.
Employers typically send out Form 1095-C by January 31st each year. If you’re an employee, it’s important to keep this form with your tax documents and review it to ensure the information is correct. If you’re an employer, this form helps you meet legal requirements and communicate essential benefits information to your employees.