Form 1095-C (2021)

What Is a 1095 C Form 2021

The 1095 C Form 2021 is an IRS document employers use to report health insurance coverage offered to their employees under the Affordable Care Act (ACA). Specifically, it is aimed at employers with 50 or more full-time employees, known as Applicable Large Employers (ALEs), indicating whether they provided eligible health coverage that meets the minimal essential coverage requirements. This form is pivotal for employees as it contains vital information needed to complete their tax returns, demonstrating they had health coverage and avoiding potential penalties.

When to Use 1095 C Form 2021

There are several scenarios in which the use of the 1095 C Form 2021 becomes mandatory:

• If a business qualifies as an ALE due to having 50 or more full-time employees, it must complete and distribute this form.
• Smaller self-insured employers are not typically categorized as ALEs but must also submit this form for any employees covered under their health plan.
• Employees who seek to understand the type of health coverage offered or need to prove healthcare coverage when filing their tax returns will require this document.

How To Fill Out 1095 C Form 2021

Filling out the 1095 C Form 2021 involves a detailed step-by-step process to ensure accuracy and compliance.

Step 1: 

Gather employer and employee identification information, including EIN (Employer Identification Number) and SSN (Social Security Number).

Step 2: 

Report information about the health coverage, including the months coverage was available and the lowest-cost premium for self-only minimum value coverage.

Step 3: 

Indicate the employee's share of the lowest monthly premium for self-only coverage, ensuring accurate calculation.

Step 4: 

Complete Part III if the employer offers a self-insured plan detailing each covered individual, their SSN or date of birth, and the months they were covered.

This step-by-step guide illustrates the systematic approach required, underscoring the importance of attention to detail when completing the form.

When to File 1095 C Form Deadline 2021

A crucial aspect of managing the 1095 C Form 2021 is adhering to the deadlines to avoid penalties. For the tax year 2021, forms were to be furnished to employees by March 2, 2022, providing ample time to prepare their tax returns. Additionally, the deadline for filing the forms with the IRS was February 28, 2022, for paper filings and March 31, 2022, for electronic submissions. Meeting these deadlines is fundamental for businesses to remain compliant with ACA requirements.

Understanding the 1095 C Form 2021 is essential for employers and employees in navigating healthcare reporting and ensuring compliance with the ACA. By adhering to the guidelines and deadlines outlined in this document, businesses can avoid potential penalties while ensuring their employees have the information needed for their tax filings.