Forms 1094-C and 1095-C

Meaning & Definition

Tax reporting forms used in the U.S. for the Affordable Care Act (ACA) are generally referred to as Forms 1094-C and 1095-C. 1095-C is given to each employee to provide information about the health coverage that an employer provides, while 1094-C is submitted by the employer to the IRS to summarise all of the employees’ 1095-Cs on one report.

Important Aspects of Forms 1094-C and 1095-C

• Assists in ensuring that organizations comply with legislation related to the Affordable Care Act (ACA).
• Tracking of employer-sponsored and provided employee benefits and health insurance.
• Assists employees in filing their taxes to report on coverage provided by their employer.
• Reduces the risk of penalties associated with not being compliant with the ACA.
• Provides an accurate method of reporting employee benefits.
• Important for global HR and Payroll departments that manage US-based employees.

Compliance Requirements

• This is not applicable in India.
• It is governed by the Internal Revenue Service (IRS) of the USA.
• Applicable under the Affordable Care Act (ACA), which is important for employers.
• Mandatory for Large organizations with 50+ full-time employees.