If your business offers health coverage to employees, you’ve likely heard of 1094 and 1095 reporting—and if you’re like many employers, you may still have questions about what’s required, who must file, and how to stay compliant.
These forms are part of the Affordable Care Act (ACA) employer reporting requirements, and filing them correctly is essential to avoid penalties and unnecessary stress. Here’s a clear breakdown of what businesses need to know.
What Are 1094 and 1095 Forms?
Forms 1094 and 1095 are used by employers and insurers to report health coverage information to the IRS and to employees.
- Form 1095 is the employee-facing form. It shows whether an employee was offered health coverage and for which months.
- Form 1094 acts as a cover sheet sent to the IRS, summarizing the information reported on the 1095 forms.
Together, these forms help the IRS verify compliance with the ACA’s employer shared responsibility rules.
Which Forms Do Employers Need to File?
The forms you file depend on your company size and plan type:
Applicable Large Employers (ALEs)
Businesses with 50 or more full-time or full-time equivalent employees must file:
- Form 1095-C for each full-time employee
- Form 1094-C as the transmittal form to the IRS
Small Employers (Under 50 Employees)
- Fully insured plans: The insurance carrier typically files 1095-B, but employers should still confirm.
- Self-funded plans: Employers may be responsible for 1095-B reporting.
Understanding which category your business falls into is critical for accurate reporting.
Who Receives These Forms?
- Employees receive Form 1095 so they can confirm health coverage when filing personal taxes.
- The IRS receives both the 1094 and 1095 forms to verify employer compliance.
Even though employees usually don’t need to submit the form with their tax return, they should keep it for their records.
Key Deadlines to Know
While deadlines may adjust slightly each year, employers should plan for:
- Providing 1095 forms to employees by early in the year
- Submitting forms to the IRS shortly after, with different deadlines for paper vs. electronic filing
Missing deadlines or submitting incomplete forms can result in penalties, making early preparation essential.
Common Reporting Mistakes to Avoid
Many compliance issues stem from avoidable errors, including:
- Incorrect employee eligibility tracking
- Inaccurate affordability calculations
- Missing or incorrect Social Security numbers
- Filing the wrong form type
- Late submissions
Working with experienced benefits and compliance partners can significantly reduce these risks.
Why Accurate 1094 and 1095 Reporting Matters
Proper reporting isn’t just about avoiding penalties—it also protects your employees and supports transparency in your benefits program. Accurate filings help ensure employees receive the correct information and demonstrate that your business is meeting its ACA obligations.
How to Stay Compliant with Confidence
ACA reporting can be complex, especially as your workforce grows or changes. The good news? You don’t have to manage it alone.
Partnering with a knowledgeable benefits advisor can help you:
- Understand your reporting obligations
- Track employee eligibility accurately
- Meet deadlines with confidence
- Reduce compliance risk year after year
Need help with 1094 and 1095 reporting?
Our team can guide you through the process, answer your questions, and help ensure your filings are accurate and on time. Reach out today to stay compliant and stress-free.
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