Who receives a 1095-C? This question is crucial for individuals and businesses alike, as the 1095-C form plays a vital role in the Affordable Care Act (ACA) reporting requirements. The 1095-C is an essential document issued by employers to employees who are offered minimum essential coverage (MEC) under the ACA. Understanding who receives this form is essential for compliance and ensuring accurate reporting.
The 1095-C form is distributed to employees who are covered under an employer’s health plan, including those who are enrolled full-time, part-time, or even seasonal workers. Employers are required to provide this form to eligible employees by January 31st of the year following the tax year for which the coverage was provided. Here’s a closer look at the key individuals who receive a 1095-C:
1. Full-time employees: Employers must provide a 1095-C to all full-time employees, regardless of whether they are enrolled in the health plan or not. This is because full-time employees are subject to the employer shared responsibility provisions under the ACA.
2. Part-time employees: Similarly, part-time employees must receive a 1095-C, even if they are not enrolled in the health plan. Employers must ensure that they have offered minimum essential coverage to these employees.
3. Seasonal workers: Seasonal workers who are employed for less than 120 days during the calendar year are also eligible to receive a 1095-C. Employers must provide this form to these employees if they are offered minimum essential coverage.
4. Employees who were covered at any point during the year: If an employee was covered under the employer’s health plan at any point during the year, they are entitled to receive a 1095-C. This includes employees who may have been covered for a short period, such as during a family member’s hospitalization.
5. Employees who were terminated during the year: Employers must still provide a 1095-C to employees who were terminated during the year, as long as they were covered under the health plan at any point.
Understanding who receives a 1095-C is crucial for both employers and employees to ensure compliance with the ACA’s reporting requirements. Employers must accurately report the information on the form to the IRS and to employees, while employees must use the information to determine their eligibility for premium tax credits and to file their tax returns. By familiarizing themselves with the individuals who receive this form, both employers and employees can navigate the complexities of the ACA and ensure proper compliance.
