Form 1094-C is essential for employers subject to the Affordable Care Act (ACA). It acts as the transmittal form for Form 1095-C, providing the IRS with an overview of an employer's compliance with ACA regulations. For applicable large employers (ALEs), understanding the purpose, structure, and filing requirements of Form 1094-C is critical to avoiding penalties.
At 1095EZ Online, we provide tools to make ACA reporting seamless, accurate, and cost-effective. This guide explains what Form 1094-C is, its significance, and how you can simplify compliance reporting.
What is Form 1094-C?
Form 1094-C is used by applicable large employers to demonstrate compliance with ACA mandates. It provides the IRS with an annual summary of an employer’s health coverage offerings, including the number of full-time employees and information about compliance with minimum essential coverage requirements.
The form also serves as a cover sheet for submitting individual Forms 1095-C for each eligible employee. Employers must file this form regardless of whether they owe penalties under the employer shared responsibility provisions.
Purpose of Form 1094-C
The primary purpose of Form 1094-C is to help the IRS verify compliance with ACA regulations. By submitting this form, employers provide critical information about their adherence to rules governing minimum essential coverage and affordable healthcare offerings. It also allows the IRS to determine whether employees received subsidies through health insurance marketplaces and whether the employer is liable for penalties.
Form 1094-C ensures transparency between employers and the IRS, creating a straightforward method for reporting compliance data. Accurate filing is essential to avoid penalties and maintain good standing with the IRS.
Filing Requirements for Form 1094-C
Employers classified as ALEs, meaning they have 50 or more full-time equivalent employees, must submit Form 1094-C annually. This requirement applies even if the employer offers adequate coverage and owes no penalties. The form must be filed alongside Forms 1095-C, which provide individual-level data about health coverage for each eligible employee.
Paper filers must submit Form 1094-C by February 28, while electronic filers have until March 31. Employers filing 250 or more Forms 1095-C are required to file electronically. Missing these deadlines can result in significant penalties, making timely submission a top priority.
Key Sections of Form 1094-C
Form 1094-C includes several important sections that employers must complete. The first section collects basic employer information, such as the employer identification number (EIN) and contact details. The second section requires certification of compliance with ACA mandates, including whether the employer offered minimum essential coverage to at least 95% of its full-time employees.
In the third section, employers provide a detailed monthly breakdown of employee counts and coverage offerings. If the employer is part of an aggregated ALE group, the final section requires listing the other members of the group. Each section must be completed accurately to avoid discrepancies or follow-up inquiries from the IRS.
Common Challenges in Filing Form 1094-C
Many employers face challenges when filing Form 1094-C, particularly when dealing with large amounts of data. Misreporting the number of full-time employees or failing to certify compliance can trigger audits or penalties. Inaccuracies in aggregated ALE group information or discrepancies between Forms 1094-C and 1095-C are other common issues.
Employers often struggle with integrating data from various systems, especially when using software that is not tailored for ACA compliance. These challenges highlight the importance of choosing a reliable compliance solution, like 1095EZ Online, to simplify the process and reduce the risk of errors.
How 1095EZ Online Simplifies Form 1094-C Filing
1095EZ Online is designed to take the complexity out of ACA compliance. Our solution operates independently of your back-office software, ensuring compatibility with any system and providing a seamless experience for employers.
By automating the data integration and validation process, 1095EZ Online reduces errors and ensures accuracy in your Form 1094-C submission. Our platform also includes built-in reminders and submission tracking to help you meet deadlines without unnecessary stress. With affordable pricing and an intuitive interface, 1095EZ Online is the ultimate tool for streamlining ACA reporting.
Why Accuracy Matters in Form 1094-C Reporting
Accurate Form 1094-C reporting is essential to avoiding penalties and ensuring compliance with ACA mandates. Errors can lead to costly fines and increased scrutiny from the IRS. Providing incorrect employee counts or failing to certify compliance accurately may result in penalties under Section 4980H of the Internal Revenue Code.
Accurate reporting also ensures that employees receive the correct information about their health coverage, reducing confusion and potential disputes. By using a reliable platform like 1095EZ Online, employers can eliminate common errors and confidently meet their ACA obligations.
The Long-Term Benefits of Simplified ACA Compliance
Streamlining your ACA compliance process with tools like 1095EZ Online offers long-term benefits for your organization. It saves time and resources by automating repetitive tasks and reducing the need for manual data entry. With fewer errors, your organization can avoid penalties and maintain positive relationships with employees and the IRS.
A seamless compliance process also allows your team to focus on strategic initiatives rather than administrative burdens. By adopting 1095EZ Online, you ensure that your compliance efforts are efficient, accurate, and cost-effective, creating value for your business year after year.
Simplify Your ACA Compliance Today
Form 1094-C is a critical component of ACA compliance, but it doesn’t have to be a headache. With 1095EZ Online, employers gain access to a simple, turn-key solution designed to streamline the process and reduce errors. Our platform offers the tools you need to file on time, stay compliant, and focus on growing your business.
Get started today to learn more about our services and how we can transform your ACA reporting experience. Let us help you take the stress out of compliance.