What is Form 1095-C?

Form 1095-C is a tax form that certain employers must provide to employees to report information about the health insurance coverage they offered. It’s part of the Affordable Care Act (ACA) reporting requirements. It helps the IRS verify whether an employer complied with the ACA’s employer mandate—and whether the employee was eligible for the Premium Tax Credit.

If you're a small business owner navigating ACA rules or growing your team past 50 full-time employees, understanding Form 1095-C is necessary. Tools like Homebase can help you manage employee classifications, schedules, and hours—all of which impact ACA eligibility and reporting.

Who has to file Form 1095-C?

Applicable Large Employers (ALEs) must file Form 1095-C for each full-time employee. ALEs are companies with 50 or more full-time employees or full-time equivalents (FTEs) during the previous calendar year.

You must file a 1095-C for every full-time employee, whether or not they enrolled in your company’s health plan. If you’re unsure whether your business qualifies as an ALE, it’s a good idea to calculate your average number of full-time and FTE employees over the past year.

What information does Form 1095-C include?

Each 1095-C form contains three main sections:

Employee and employer information – Includes names, addresses, and tax identification numbers (TINs)
Offer of coverage – Details about the health coverage offered, including:
- Which months coverage was offered
- Type of coverage (individual, family, minimum essential coverage)
- Whether coverage met ACA’s affordability standards
Covered individuals – Lists who was enrolled in the health plan (if applicable), including dependents

The IRS uses this form to confirm that:

The employer met ACA coverage requirements
The employee (and dependents) had access to affordable, qualifying health insurance

When is Form 1095-C due?

Form 1095-C has two key deadlines:

To employees: Must be provided by March 3, 2025 (for the 2024 tax year)
To the IRS:
- Paper filing: February 28, 2025
- Electronic filing: March 31, 2025 (required if submitting 10 or more forms)

Make sure you also submit Form 1094-C, the transmittal form summarizing all the 1095-Cs you filed.

How does Form 1095-C impact employees?

Employees use Form 1095-C to:

Confirm whether they were offered affordable health coverage through their employer.
Determine their eligibility for Premium Tax Credits if they opted out of employer coverage and purchased a plan through the Marketplace.
File their taxes—although the IRS doesn’t require the form to be submitted with their return, it’s good to keep for personal records.

Do small businesses need to worry about Form 1095-C?

If your business has fewer than 50 full-time employees, you are not required to file Form 1095-C. However, if you're close to that threshold or planning to expand, it’s smart to familiarize yourself with ACA rules now.

And even if you’re not required to file, offering health coverage and understanding the ACA landscape can help you:

Attract and retain employees
Avoid future penalties as your team grows
Stay ahead of compliance as regulations evolve

Form 1095-C is an important part of ACA compliance for larger employers, but it’s also a signal to growing businesses that you’re entering a new stage of responsibility. By tracking employee hours and understanding health coverage obligations now, you’ll be better prepared if and when your business hits that 50-employee mark.

Sign up for Homebase to simplify scheduling, time tracking, and payroll so you can stay ahead of compliance.

How Homebase helps with ACA and workforce compliance

While Homebase doesn’t file Form 1095-C directly, it helps you manage the data needed to determine if your business is an ALE—and whether your employees are full-time or part-time. You can:

Track employee hours and full-time status
View staffing reports to assess ACA applicability
Set up scheduling tools that help you manage labor strategically
Use Homebase Payroll to sync hours, wages, and benefits all in one place

Try Homebase Payroll to make managing benefits and ACA-related data easier for your business.

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