Forms 1094-C and 1095-C

What are Forms 1094-C and 1095-C?

Form 1094-C and Form 1095-C are forms used to report required information about healthcare to the IRS. Following the Affordable Care Act (ACA), all applicable large employers (ALEs) need to report whether they’ve offered health coverage to each employee and whether those employees are enrolled in health coverage. Form 1094-C is the summary of this information for all employees. Employers must file a Form 1095-C for all employees who were full time employees during any month of the calendar year. They also need to send a copy of Form 1095-C to these employees. 

Which Employers Need to File Form 1094-C and 1095-C?

To be considered an ALE, an organization must employ more than 50 Full-Time Employee Equivalents (FTEs). The ACA considers any employee working more than 30 hours per week as a full-time employee. In addition, the law adds all the hours worked by part-time employees with less than 30 hours each week as a factor in the final FTE tally. 

What is the Formula for 1094-C and 1095-C?

The formula for calculating FTEs is as follows: 

Full Time Employee Count + (Total Part Time Hours/30) = FTE Total

Here’s how the equation looks in an example where 20 employees work 32 hours per week and 10 others work 20 hours per week:

20 FTEs + (200/30) = 26.66 FTEs