It is that time of year: ACA filing deadlines are fast approaching for employers who are “applicable large employers” (ALEs) within the meaning of the ACA (employers with 50+ full-time and full-time equivalent employees in the previous calendar year). ALEs must report to the IRS whether they offered full-time employees and their dependents the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, whether the offered coverage was affordable and provided minimum value, and certain other information that the IRS uses to enforce the ACA’s employer shared responsibility penalty and individual premium tax credits. In addition, self-insured health plans (including level-funded plans) must also report certain coverage information for all enrolled individuals on the plan.
Reporting is completed via Forms 1094-C and 1095-C. (Small employers who are not ALEs but are self-insured and subject to coverage reporting requirements use Forms 1094-B and 1095-B.) Employers must prepare a Form 1095-C for each full-time employee (and any part-time employees who participate in the health plan). The Forms 1095-C must be made available to employees (or sent to them) and the forms are also filed with the IRS, along with a Form 1095-C transmittal form.
Plan sponsors subject to reporting requirements should be aware of three deadlines:
- March 2, 2026 is the deadline for employers to post a clear, conspicuous, and accessible notice on their website, informing individuals that they can request a copy of the Form 1095-C. The standard deadline of February 28 falls on a Saturday and has been automatically extended to the next business day. If requested, the forms must be furnished by the later of January 31, 2026, or within 30 days of the request.*
- March 2, 2026 is also the deadline for filing the Form 1094-C transmittal (and copies of related Forms 1095-C) with the IRS, if the filing is made on paper. (Note: only employers who file ten or less IRS returns—of any kind—may file in paper. All other employers must file electronically.)
- March 31, 2026 is the deadline for electronically filing the Form 1094-C transmittal (and copies of related Forms 1095-C) with the IRS.
You can apply for an automatic 30-day extension of the deadlines to file with the IRS—whether you are a paper or electronic filer—but the extension is available only if you file Form 8809 before the applicable due date.
Employers who fail to meet their reporting obligations are subject to a penalty. Failures include late filings, omissions of required information, incorrect information, or failing to file electronically. Because separate penalties apply for returns filed with the IRS and employee statements, failures can result in “double” penalties—one for the statement to be furnished to an individual and a second penalty for the return to be filed with the IRS.
For 2025 returns and statements filed and furnished in 2026, the penalty for failing to file is increased to $340 per return, not to exceed $4,098,500 ($1,366,000 for filers with gross receipts of $5 million or less for the three most-recent taxable years). Failures corrected within 30 days result in reduced penalties of $60 per return or statement, not to exceed $683,000 ($239,000 for filers with gross receipts of $5 million or less for the three most-recent taxable years). Failures corrected by August 1 result in reduced penalties of $130 per return or statement, not to exceed $2,049,000 ($683,000 for filers with gross receipts of $5 million or less for the three most-recent taxable years). Special rules apply that increase the penalties if there is intentional disregard of the requirement to file the returns and furnish the required statements.
* As addressed in an earlier post, the Paperwork Burden Reduction Act provides that employers are no longer required to automatically furnish Forms 1095-C to individuals.
