Every employee of an employer that has 50 or more full-time employees who are eligible for insurance coverage should receive Form 1095-C, a statement of the Employer Provided Health Coverage. Eligible employees who decline to participate in their employer’s health plan will still receive a 1095-C which shows the coverage that they could have obtained. Form 1095-C identifies:
- The employee and the employer.
- Which months during the year the employee was eligible for coverage.
- The cost of the least expensive monthly premium the employee could have paid under the plan.
The information contained on Form 1095-C is informational and allows the preparer to verify that the taxpayer and/or their dependents have minimum essential health care coverage. Although the Shared Responsibility Payment (or penalty) has been eliminated by the Tax Cuts and Jobs Act starting with the tax year 2019, employees will continue to receive Form 1095-C with information about their coverage in 2020.
For the tax years when the Shared Responsibility was in in effect (2014-2018), the Form 1095-C was used to assist the preparer in the entries to the Coverage Exemptions on Form 8965 and determine when the cost of Employer provided coverage is deemed unaffordable. The Taxpayer is not required to have Form 1095-C to complete the tax return.
If an employer with 50 or more full time employees does not offer its employees insurance, the 1095-C will indicate that fact.