The 1094-C form is sent to the IRS by employers who are required to offer health insurance coverage to their employees under the Affordable Care Act (ACA). This form serves as a cover sheet for the accompanying Form 1095-C, which provides detailed information about the health insurance coverage offered to each employee.
The primary purpose of the 1094-C form is to provide the IRS with an overview of the employer’s health insurance offerings. It includes information such as the employer’s name, address, and employer identification number (EIN). Additionally, it provides a summary of the number of employees offered coverage, the total number of employees, and the average number of employees per month.
The 1094-C form is not sent to employees directly. Instead, employees receive Form 1095-C, which is a detailed statement about the health insurance coverage offered to them by their employer. This form includes information such as the employee’s name, Social Security number, and the months in which they were offered coverage.
Employees who receive health insurance coverage through their employer are required to receive a Form 1095-C. This form is used by employees when filing their individual tax returns to verify that they had minimum essential coverage under the ACA. It also provides information about any premium tax credits or other subsidies the employee may have received.
It’s important to note that not all employers are required to provide Form 1095-C to their employees. Small employers with fewer than 50 full-time equivalent employees are generally exempt from this requirement.
The 1094-C form is sent to the IRS by employers to provide an overview of their health insurance offerings, while Form 1095-C is provided to employees to document their health insurance coverage. These forms help the IRS ensure that employees are receiving the appropriate health insurance coverage under the ACA.