The employer mandate of the Affordable Care Act requires employers with 50 or more full-time equivalent employees (Applicable Large Employers, aka ALEs) to offer healthcare coverage to their full-time employees or potentially pay a penalty to the IRS. One of an employer’s responsibilities as an ALE is to complete Form 1095-C, which is then distributed to employees and the IRS, and details the employer-based health insurance coverage being provided. Employees can use this form to help determine their eligibility for a premium tax credit. Think of the form as “proof of insurance” to the IRS.
