1095 Reporting Update for 2026

The ACA requires employers to furnish Form 1095-C to employees annually. The Form 1095 provides a formal record of coverage offered to each employee and whether the coverage is deemed “affordable” by ACA standards. In addition, the 1094-C (transmittal form) must be submitted to the IRS along with copies of all employee 1095-Cs.

New Post Notice and Furnish Upon Request Option

In welcome news, employers are no longer required to automatically send Form 1095-C to individuals. The IRS has clarified that the requirement for furnishing the statements can be met if the employer provides clear, conspicuous, and accessible notice on its website that an individual may request a copy of their Form 1095-C statement and a copy is then furnished to the individual in a timely manner. For this purpose, the statement is timely furnished if provided to the individual no later than the later of January 31, 2026, or 30 days after the date of the request.

The option of not automatically sending 1095s to all employees and defaulting to providing notice and furnishing upon request is a welcome relief for many employers.

What About State Filing Requirements?

Employers should be cautious about defaulting to the furnish-upon-request post-not-mail option when state filing requirements are in play. Many states have been slow to adopt the post-notice-and-furnish method of furnishing statements. Employers are advised to confirm the state filing requirements to assure compliance with statement requirements.

CA Does Not Allow "Furnish Upon Request" Option

California employers must still actively furnish Form 1095-C to each full-time employee. The Franchise Tax Board (FTB) has not adopted the new flexible federal rule that allows employers to post a notice and furnish 1095s upon request only.

Standard Deadlines for Furnishing 1095-C

To Employees:

• The deadline to furnish Forms 1095-C for coverage provided during the 2025 calendar year is March 2, 2026. This reflects an automatic extension from January 31^st. No additional extensions are granted.

To Employees (in CA and MA):

• The deadline for employers to furnish state-level 1095-C to employees covered under self-funded or level funded plans in California and Massachusetts is January 31^st. There is no extension for these state-level 1095-Cs.

To the IRS:

• The deadline to file forms 1094-C and 1095-C with the IRS for coverage provided during the 2025 calendar year is March 31, 2026. Employers filing more than ten (10) W-2s are required to file electronically with the IRS. 
  
  

Penalties

The penalties for failing to file correct information returns with the IRS (Form 1094-C/1095-C) can be substantial. In addition, failing to furnish correct statements to employees and failing to file forms are assessed separately.

References

• IRS Instructions for Forms 1094-C and 1095-C