What's the difference between
1095-C vs. 1094-C Forms
Here’s a quick breakdown of each
Form 1095-C
Purpose: Provided to employees to report healthcare coverage.
Details: Summarizes the type and duration of health insurance offered to each full-time employee and verifies whether it meets ACA requirements.
Employee Distribution: Must be provided to employees and filed with the IRS.
Function for Employees: Allows employees to confirm their healthcare coverage for tax purposes.
Form 1094-C
Purpose: A transmittal form that tracks, summarizes, and records the employer’s ACA compliance status for the IRS.
Details: Contains information on the employer’s size, number of employees, and overall health coverage offered.
Filing with IRS: Submitted only to the IRS (not employees), often alongside multiple 1095-C forms.
Function for IRS: Helps the IRS determine if the employer meets ACA standards and whether penalties may apply.
In short, Form 1095-C is specific to each employee’s coverage details, while Form 1094-C acts as a summary report on behalf of the employer to the IRS. Consolidated Appropriations Act of 2021 (CAA) introduced new regulation
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