What Do You Need to Know About IRS Form 1095-C?

If your firm has less than 50 full time equivalent employees, this article MAY not apply.  But if your firm has clients with 50 or more employees you may want to make sure that the client or their payroll service, or your firm, is providing the Form for your client’s employees

Listed below are some Frequently Asked Questions about IRS form 1095-C.

What is Form 1095-C?

The Affordable Care Act includes both the individual mandate and the employer mandate.

• The individual mandate requires that most Americans have qualifying healthcare coverage or potentially face a fine.
• The employer mandate requires employers with 50 or more full-time equivalent employees to offer healthcare coverage to their full-time employees or face a fine.

Who receives a Form 1095-C?

An employer is required to send Form 1095-C to employees that meet the IRS definition of a full-time employee – those employees working an average of 30 hours a week or 130 hours per month, as well as any individual who was enrolled in a health insurance plan.   

When will I get my Form 1095-C?

If you are eligible to receive a Form 1095-C, and because of recent changes in legislation, your employer is required to send your Form 1095-C for the 2015 tax year on or before March 31, 2016.

What should I do with my Form 1095-C?

You will not need the form to complete your 2015 tax return but you should keep the form you receive for your tax records.

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