ACA reporting tells the IRS and employees what coverage was offered.
Section 6056 of the tax code is the statute behind employer reporting of offers of coverage on Forms 1094-C and 1095-C.
The Basics for Employers.
A plain-English summary. This is general information, not legal advice, and the rules change, so check the current text.
Who Reports
Applicable large employers, generally those averaging 50 or more full-time equivalent employees, file the reports.
What Gets Reported
The forms show the coverage offered to each full-time employee and the months it was available.
Deadlines
Employers either furnish each employee a form or post a notice that employees can request one, and file with the IRS by deadlines that are set each year.
How it plays out.
Under Section 6056, applicable large employers report to the IRS and to employees what coverage they offered. The forms are 1094-C and 1095-C, and they let the IRS check the employer mandate and employee eligibility for premium tax credits.
The forms are built month by month. Each employee’s form shows whether coverage was offered, at what cost and under which safe harbor. Errors usually come from mid-month changes, rehires and employees who switch between full-time and part-time.
Employers that self-fund also report on covered individuals. Insured employers get that reporting from the carrier. Either way, the filing is only as good as the underlying payroll and enrollment data.
Where This Shows Up in Your Plan.
ERISA, ACA Reporting and Form 5500 Support
How we help with the filings, notices and plan documents.
Employer Benefits Guides: Eligibility, Plan Design, Life Events and Rules
Eligibility, plan design and life-event rules in one place.
Preparing the filing.
Pull Monthly Data
Gather hours, offers and coverage by month.
Check Employee Status
Confirm who was full-time in each month.
Apply Codes
Choose the right offer and safe harbor codes.
Review Before Filing
Read a sample of forms against payroll.
Mistakes to avoid.
Annual Snapshots
The forms are built by month.
Wrong Safe Harbor Code
The wrong code can show a penalty that is not owed.
Late Furnishing
Forms have to reach employees by the deadline.
Other Rules Employers Work With.
Employer Shared Responsibility
26 U.S.C. 4980H
No Surprises Act
Public Law 116-260, Division BB
Mental Health Parity
29 U.S.C. 1185a
Laws and Rules Referenced
ACA Reporting (26 U.S.C. 6056) — The statute or rule text from its official or public source.
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