Form 1095-C: Comprehensive Guide to Employer-Provided Health Insurance Offer and Coverage

Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is a tax form that certain employers must provide to full-time employees who are eligible for health insurance benefits.

Key Features and Components

The form includes information about the employer, the employee, and details regarding the health coverage offered by the employer. It also indicates the months during the tax year when the employee and any dependents were covered under the employer’s plan.

Relevant Filing and Compliance Requirements

Employers subject to the Affordable Care Act’s employer mandate are required to furnish Form 1095-C to employees and file copies with the IRS. Failure to comply with these requirements can lead to penalties imposed by the IRS.

Penalties for Non-Compliance

Employers who fail to file accurate and timely Form 1095-C may face penalties ranging from $50-$270 per form, depending on the severity of the violation. These penalties can escalate quickly, underscoring the importance of proper compliance.

Importance in Tax Resolution and Financial Compliance

Form 1095-C plays a vital role in tax resolution as it helps ensure individuals accurately report their health coverage status on their tax returns. Compliance with this form is essential for both employers and employees to avoid potential penalties and maintain financial integrity.