The 1094-C/1095-C Reporting System
ALEs must report health coverage information to the IRS and to employees annually using Forms 1094-C and 1095-C. Form 1095-C is provided to each full-time employee and reports whether coverage was offered, the employee's share of the premium, and whether the coverage was affordable. Form 1094-C is the transmittal form filed with the IRS along with all Form 1095-C returns.
| Form | Purpose | Deadline |
|---|---|---|
| Form 1095-C | Furnish to each full-time employee | March 2 (or next business day) |
| Form 1094-C + 1095-C | File with IRS (electronic) | March 31 |
Common 1095-C Errors
- Incorrect Line 14 indicator codes: Using the wrong code to describe the coverage offered
- Incorrect Line 15 employee premium: Reporting the wrong employee contribution amount
- Missing or incorrect Line 16 safe harbor codes: Failing to claim the applicable affordability safe harbor
- Wrong employee classification: Treating variable-hour employees as part-time when they should be full-time
- Missing dependents: Failing to report coverage offered to dependents on Line 17
- Incorrect plan start month: Using the wrong month for the plan start month indicator
Penalties for Incorrect Reporting
The penalty for failure to file a correct information return is $310 per return (2026), up to $3,783,000 per year. The penalty for failure to furnish a correct payee statement is also $310 per statement. These penalties can be reduced or waived for reasonable cause.