Signed into law in 2010, the Affordable Care Act (also called “Obamacare” and “the ACA”) has introduced changes for businesses and individuals. Everyone in the United States is now required to have health insurance or pay a penalty, and most large employers are required to provide health care coverage to their full-time employees. There are three related forms that employees may receive: 1095-A, 1095-B, and/or 1095-C.
Employers are not responsible for providing 1095-A or 1095-B forms, but individuals may receive one of these forms from their insurer or marketplace if they purchased insurance.
The 1095-C form is a form that large employers are required to produce for full-time, benefits-eligible employees, or other individuals receiving health insurance benefits through the company. Form 1095-C details the months an individual was offered health insurance coverage by their employer. Individuals who work for an employer whose benefit plan is self-insured should see Part III of the 1095-C completed with all individuals covered under the plan and the covered months clearly indicated.
When will individuals get these forms and what should they do with them?
1095-C forms are distributed on a schedule similar to W-2 forms—but these are not W-2 forms. Individuals will receive forms in one of these ways by March 31 (date subject to change):
- Home delivery via U.S. mail
- In-person delivery at their workplace
- Online self-service copies will also be available
Individuals should save 1095-C form with their other tax forms for the year, but they will not need to submit this form with their taxes. Individuals will be asked whether they had health care coverage during the year when they file their taxes prior to April 15. These forms demonstrate to the IRS that someone has had the minimum level of health care coverage that is required by law. If an individual is audited, they will need these forms as proof of health insurance coverage.
Employers: Click here to download a copy of this article to share with your employees.
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