_Teal.svg){kind=icon}
.png&w=1080&q=75)
As an employer, you comply with numerous tax filing requirements and deadlines. Tax rules can feel complicated and overwhelming.
Forms 1095-A, 1095-B, and 1095-C add to the confusion. Although the 1095 forms are similar, employers must understand the differences and comply with IRS reporting rules.
This article will help you understand Forms 1095-A, 1095-B, and 1095-C. We’ll explain who should file each form and what to report.
1095 Forms: Understand the Purpose of Each
The 2010 Affordable Care Act (ACA) introduced health insurance requirements for U.S. individuals and employers. Forms 1095-A, 1095-B, and 1095-C help the IRS monitor compliance with the ACA rules.
Forms 1095 provide health insurance information to the IRS. Each type of form serves a different purpose.
Form 1095-A reports information about individuals with Marketplace coverage.
Form 1095-B provides information about individuals insured with minimum essential coverage.
Form 1095-C reports information about employees of Applicable Large Employers (ALEs).
Filers must issue the forms at the beginning of each tax year. Form 1095 recipients use the information for their income tax return forms.
The IRS imposes penalties for failure to file information returns. To avoid penalties, employers should understand the filing requirements.
Form 1095-A: Essential Information
What Is Form 1095-A?
IRS Form 1095-A, Health Insurance Marketplace Statement, reports information about individuals covered under marketplace insurance plans. Form 1095-A also helps individual recipients calculate and take the premium tax credit.
What Is the Health Insurance Marketplace?
The federal government offers a health insurance enrollment platform called the Health Insurance Marketplace. Several states run separate Marketplace websites. The Marketplace helps individuals and families purchase health insurance coverage.
Additionally, individuals can check their eligibility for lower monthly insurance premiums, Medicaid, or the Children’s Health Insurance Program (CHIP).
Who Should File Form 1095-A?
Health Insurance Marketplaces submit Form 1095-A to the IRS. Marketplaces must also provide one Form 1095-A to each individual enrolled in health care coverage through the Marketplace.
What to Report on Form 1095-A
Marketplaces must submit a separate Form 1095-A for each covered individual. Form 1095-A includes the following information:
Marketplace name and identifier
Policy details
Information on the primary insured individual and covered dependents
Monthly coverage, premiums, and tax credit advance payments
How to File Form 1095-A
Marketplaces must submit Forms 1095-A to the IRS electronically.
The Marketplace may electronically submit tax forms to recipients requesting an electronic format. The Marketplace must mail each form to every recipient who does not consent to electronic submission.
Form 1095-A Due Date
The deadline for 2024 1095-A forms is January 31, 2025.
Form 1095-B: Essential Information
What Is Form 1095-B?
IRS Form 1095-B, Health Coverage, reports information about individuals covered under minimum essential coverage.
What Is Minimum Essential Coverage?
Minimum essential coverage refers to health plans meeting ACA requirements. The following examples generally qualify:
Employer-sponsored health insurance plans
Insurance policies purchased through the Health Insurance Marketplace
Government-sponsored programs, including Medicare, Medicaid, and veteran healthcare programs
Insurance policies purchased directly from U.S. health insurance companies
Numerous other health care plans qualify as minimum essential coverage. The IRS provides detailed qualification information for each type of minimum essential coverage in the instructions to Form 1095-B.
We recommend consulting tax professionals to confirm your plan meets the ACA requirements.
Who Should File Form 1095-B?
The following minimum essential coverage providers must file Form 1095-B:
Employers with less than 50 full-time employees (including full-time equivalent employees)
Health insurance providers (excluding Marketplaces)
Additionally, employers with 50 or more full-time employees can use Form 1095-B to report employer-sponsored self-insured health coverage offered to non-employees.
Essential minimum coverage providers must submit one Form 1095-B for each individual receiving health care coverage.
What to Report on Form 1095-B
Form 1095-B must include the following information for each covered individual:
Name, address, and social security number
Employer name, address, and EIN
Issuer or other coverage provider information
Monthly coverage for each individual and covered family members
How to File Form 1095-B
Filers may submit Form 1095-B to the IRS electronically. However, taxpayers who file fewer than ten information returns (including non-1095 forms) can file the forms via paper mail.
1095-B submissions to the IRS must include an IRS Form 1094-B, Transmittal of Health Coverage Information Returns. Form 1094-B provides employer and contact information. Filers can submit one Form 1094-B to cover all Forms 1095-B.
Form 1095-B filers must also provide a copy to each covered individual. Filers can generally offer electronic copies through an online portal. If any recipient prefers to receive a paper copy, mail a paper form to their address.
Form 1095-B Due Dates
Your deadline for submitting 2024 Form 1095-B to the IRS depends on your filing method. Refer to the following due dates.
Mailing forms to the IRS: February 28, 2025
Electronically filing forms with the IRS: March 31, 2025
The 2024 deadline for submission to individual recipients is March 3, 2025.
Form 1095-C: Essential Information
What Is Form 1095-C?
IRS Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, reports information about employees covered under employer-sponsored health insurance policies.
Form 1095-C includes the following information:
Details of health coverage offered to employees
Employee enrollment in health care plans
Employees’ eligibility for premium tax credits
Who Should File Form 1095-C?
Applicable large employers (ALEs) must file Form 1095-C to comply with ACA rules.
What Is an Applicable Large Employer (ALE)?
An applicable large employer is any employer with an average of 50 or more full-time (or full-time equivalent) employees.
The IRS uses 1095-C forms to determine whether an employer’s insurance coverage offerings meet the ACA’s shared responsibility provisions. ACA rules require ALEs to offer minimum essential coverage that meets specific criteria. Employers that fail to meet these requirements must make an employer shared responsibility payment to the IRS.
What to Report on Form 1095-C
Form 1095-C must include the following information for each covered individual:
Name, address, and social security number
Employer name, address, and EIN
Offer of coverage and monthly cost to the employee
Monthly coverage for each individual and covered family members
How to File Form 1095-C
Filers may submit Form 1095-C to the IRS electronically. However, taxpayers who file fewer than ten information returns (including non-1095 forms) can file the forms via paper mail.
IRS Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, must accompany the Form 1095-C submission. Form 1094-C includes information about the ALE and related business entities (if any). Filers can submit one Form 1094-C to cover multiple Forms 1095-C.
Form 1095-C filers must also provide a copy to each covered individual. Filers can generally offer electronic copies through an online portal. If any recipient prefers to receive a paper copy, mail a paper form to their address.
Form 1095-C Due Date
Your deadline for submitting 2024 Form 1095-C to the IRS depends on your filing method. Refer to the following due dates:
Mailing forms to the IRS: February 28, 2025
Electronically filing forms with the IRS: March 31, 2025
The 2024 deadline for submission to individual recipients is March 3, 2025.
Don’t get overwhelmed by form due dates. 1-800Accountant can support your small business with year-round advisory and return preparation.
Form 1095 FAQ: Everything Else You Need to Know
What’s the Difference Between Form 1095-A, 1095-B, and 1095-C?
Health Insurance Marketplaces use Form 1095-A.
Health insurance carriers and employers with fewer than 50 employees use Form 1095-B.
Applicable large employers (with 50 or more employees) use Form 1095-C.
What Is the Deadline to File 1095 Forms?
Due dates depend on the form type and filing method. Refer to the following deadlines for forms covering calendar year 2024.
Due Dates for Submission to the IRS
1095-A: January 31, 2025
1094-B and 1095-B
Electronic filing: March 31, 2025
Paper filing: February 28, 2025
1094-C and 1095-C
Electronic filing: March 31, 2025
Paper filing: February 28, 2025
Due Dates for Receipt by Covered Individuals
Form 1095-A: January 31, 2025
Forms 1095-B and 1095-C: March 3, 2025
What Is the Penalty for Late Filing?
The IRS imposes penalties for failing to file information returns or submit payee statements on time. The penalty amount depends on the length of the delinquency.
The IRS imposes the following penalties per return due in 2025.
Filed up to 30 days late: $60
Filed 31 days late through August 1st: $130
Filed after August 1st or accidentally not filed: $330
Intentionally not filed: $660
Employers with large workforces could face hefty fines for accidentally or purposely disregarding 1095 filing requirements.
Avoid Penalties and Get Personalized Help with Your 1095 Forms
The Form 1095 rules can feel confusing and complicated. Fortunately, you can avoid tedious, time-consuming paperwork by outsourcing your tax compliance to professional accountants.
1-800Accountant can support your business with budget-friendly tax advisory services. Professional CPAs offer year-round advice and tax preparation. You can save time and avoid costly penalties when you rely on 1-800Accountant for outsourced business tax services.
Schedule a free consultation with 1-800Accountant to learn about personalized bookkeeping, tax, and accounting services.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.