What are the tax reporting requirements for an ALE offering ICHRA?

How do I file Forms 1094-C and 1095-C?

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Updated over a week ago

What is an Applicable Large Employer (ALE)?

An applicable large employer (ALE) is a formal definition established by the Internal Revenue Service (IRS). While the 'rule of thumb' for an ALE is 50+ full-time equivalents, if you're not sure if you met the formal ALE definition for the calendar year, we recommend consulting with a tax advisor or visiting this IRS website.

If your company is an ALE, you are subject to the employer shared responsibility provisions of the Affordable Care Act - also known as the "employer mandate" to offer health insurance coverage or make payments to the federal government. The reporting forms outlined below are used by the IRS to reconcile this responsibility. Note that as of 2023, there are no W-2 reporting requirements for an ICHRA.

What forms do I need to report if I offered an ICHRA last year?

As an applicable large employer (ALE), current regulations require that you:

  1. File a Form 1094-C and accompanying Forms 1095-C with the IRS, and

  2. Provide a Form 1095-C to any employee who is full-time for at least one month during the calendar year.

Employers must report information for all twelve months for each employee on these Forms. Important reminder: the offer of coverage through ICHRA is not taxable, but it may impact an employee’s eligibility for tax credits (if any) from the Marketplace.

What will Take Command Health provide for me to complete my tax forms?

If you had an active ICHRA with us in a given calendar year, we will provide you with a spreadsheet that summarizes some (not all) of the information required to be reported on the Form 1094-C and accompanying Forms 1095-C. We'll make this report available in the documents section of your admin portal and send you an e-mail when it's ready.* Please expect the report in January.

On the spreadsheet, we list your eligible employees and some of the required information that should be reported on the Forms 1095-C, according to our records. It’s up to the ICHRA plan administrator (that’s you!) to review the data to make sure that the eligible employee list and required information are complete and accurate. (Hint: if not, it means our records don't match yours, but that's ok! Let us know and we can help get it up to date!)

*Note that if you are no longer a Take Command Health client, you can still access this report in your member portal, even though the HRA is no longer active.

When & how do I file these forms?

For the 2023 reporting period, you will need to file your 2023 Form 1094-C and accompanying Forms 1095-C by:

  • February 28, 2024 if filing on paper (not recommended), or

  • April 1, 2024 if filing electronically.

You'll also need to furnish the Forms 1095-C to your employees no later than March 1, 2024. You can find specific filing instructions and additional requirements in the Instructions for Forms 1094-C and 1095-C.

Note that the electronic-filing threshold for information returns required to be filed on or after January 1, 2024, has been decreased to 10 or more returns. Per the IRS, "The 10-or-more requirement applies in the aggregate to certain information returns that are original or corrected returns. Accordingly, a filer may be required to file fewer than 10 Forms 1094-C and 1095-C, but still have an electronic filing obligation based on other kinds of information returns filed. The electronic filing requirement does not apply if you request and receive a hardship waiver. The IRS encourages you to file electronically even though you are filing fewer than 10 returns."

Will Take Command complete and file these forms for me?

No. Take Command is not licensed to help our clients with completing, filing or distributing the 1094 / 1095 forms. We recommend working with your payroll provider or tax advisors if assistance is needed.

While Take Command cannot help with completing and filing forms, we recommend ETC. Here's a link to their website.

What if I do not have 50+ employees?

Not an ALE? Please see our help article for employers with less than 50 employees offering an ICHRA for more information on the tax reporting you are required to file.

Looking for more info on the codes?

Check out more info on how to report the right codes in Line 14 and Line 16 of Form 1095.

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