Final 2021 ACA Form 1095- C and Instructions Released

At A Glance

• The IRS published final 2021 Form 1095-C and 1095-C Instructions.
• Two new codes, 1T and 1U, for individual coverage HRAs have been added to the form and corresponding instructions.
• Information about the extension of the due date for furnishing statements to individuals  has also been added to the instructions.

Form 1095-C and Instructions

For 2021, the Form 1095-C and Instructions have been modified to add new codes 1T and 1U for individual coverage HRAs (ICHRA) offered to the employee and spouse, but not dependents.

Additionally, the instructions include information about the extension of the due date for furnishing statements to individuals has been added. The due date for furnishing Form 1095-C to individuals is extended from January 31, 2022 to March 2, 2022. The instructions also remove references to penalty relief for reporting incomplete or incorrect information if the filing entity made good faith efforts to comply.

Next Steps

Paylocity clients must finalize ACA form data by the end of business on January 5, 2022 to ensure all company administrators receive year-end forms timely.

Paylocity clients may also consider the following alternative options to allow extra time to finalize forms and avoid reprint fees:

• Go Paperless to avoid reprint fees of $75 per package plus delivery in case updates to original forms need to be made up until February 15, 2022
• Contact a Paylocity Representative for assistance to regenerate forms after making necessary

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.