Applicable Large Employers (ALEs) must furnish Forms 1095-C (both fully insured and self/level-funded plans) and 1095-B (if self/level-funded plans) to covered individuals by March 2, 2026.
Electronic filers are required to submit corresponding copies (Forms 1094-C, 1094-B, 1095-C, and 1095-B) to the IRS by March 31, 2026. Employers that submit a total of 10 or more returns are required to file electronically. This electronic filing requirement includes organizations that were previously eligible to file on paper.
ALEs must ensure that they accurately report offers of coverage, apply affordability safe harbors, determine full-time employee status, and document months of coverage. 1095-C and 1095-B submissions are reviewed by the IRS to determine ACA compliance.
In addition to the federal filing requirements, California, Massachusetts, New Jersey, and Rhode Island generally require forms to be furnished to individuals by January 31, 2026, with electronic filings to state agencies typically due by March 31, 2026. ALEs who have employees in one of these states should contract their health insurance carriers to determine any employer reporting obligations.
Accurate affordability safe harbor coding, measurement period documentation, and correction procedures remain critical. Employers should conduct pre-filing audits and retain records to support responses to IRS or state enforcement inquiries.
Failure to comply with this filing requirement will result in the following penalties.
| Penalty Type | Per Violation | Annual Maximum | Annual Maximum for Small Employers* |
| General | $340 | $4,098,500 | $1,366,000 |
| Corrected Within 30 Days | $60 | $683,000 | $239,000 |
| Corrected After 30 Days But Before August 1 | $130 | $2,049,000 | $683,000 |
| Intentional Disregard | $680 | No limit | No limit |
*The maximum penalty amounts are different for small businesses and large businesses. For purpose of the maximum penalty, a small employer is one that has average annual group receipts up to $5 million for the three most recent taxable years. There is no maximum penalty for intentional disregarding of the filing requirement.
This information has been provided to the best of our knowledge and does not constitute as legal advice. Employers should seek professional advice before entering into any commitments.