Affordable Care Act

Important Notice to All Employees: 1095-C Tax Form

The Affordable Care Act (ACA) requires certain employers to offer health coverage to full-time employees and their dependents. Those employers must send an annual statement to certain employees describing the health care coverage available to them. As a result, the Internal Revenue Service (IRS) created the 1095-C. The 1095-C is an annual statement that reports the employer health care coverage employees were offered or were covered during the calendar year. Social Security numbers (SSNs) are required on the 1095-C to ensure the IRS can tie information back to the employee’s tax records. Employees need to provide accurate SSNs for themselves and/or their enrolled dependent(s).

The ACA's individual mandate was repealed by Congress there is no federal penalty for not having health insurance. If employees were full-time for one or more months in 2023, or if they were a part-time employee who elected health care coverage in 2023, they receive their 1095-C from Princeton University by mail on or about January 31, 2024. 

The 1095-C tells the government that employees had qualifying health coverage, also called minimum essential coverage. Princeton University is required to report this information from the 1095-C forms to the IRS to confirm who had health coverage. Therefore, it is important to review the 1095-C to make sure that the information provided on the form is correct. If any of the information on the form is incorrect, contact the Benefits Team at (609) 258-3302 or [email protected].

If employees had health insurance through Princeton University, the 1095-C is for information only and does not need to be sent to the IRS with their taxes. However, we recommend that employees keep the form with their tax documents. Therefore, employees do not need to wait until they receive the 1095-C to file their taxes.

Princeton is providing access to a Tax Form User Site where employees can request reissued copies of the 1095-C. Employees are able to access their 1095-C on or after January 31, 2024. A user guide that explains how to create an account, opt in for electronic notification, and access year-end tax statements is also available. Employees can also contact the Benefits Team to request a copy of the 1095-C.

Additional information is available on the IRS website.

For questions, contact the Benefits Team at (609) 258-3302 or [email protected].

State Individual Health Insurance Mandates

The New Jersey Health Insurance Market Preservation Act requires New Jersey residents without health coverage to pay a tax penalty. Princeton University is required to report the healthcare coverage status for those who elected or waived coverage in 2023 through the 1095-C by March 31, 2024. Individuals who live outside of New Jersey should check with their state government to inquire whether they are affected by a similar law.  Individuals who need more information should consult with their accountant or tax advisor.

Employer Mandate

The “employer mandate” under the ACA requires employers with 50 or more employees to offer medical coverage to employees who work an average of 30 hours or more per week during a prior measurement period. Princeton has opted to offer the ACA medical plan to eligible employees who work an average of 20 or more hours per week during a measurement period. For Princeton, the ongoing measurement period each year is November 1, through October 31. This measurement period does not apply to employees hired during the year. Time worked for employees hired during the year is measured for a 12-month period from their date of hire. For employees who are currently in an employment category that is benefits-eligible, the new law has no effect on that eligibility. This applies only to employees who are working as casuals, short term professionals, or who do not otherwise qualify for benefits coverage.

For employees who qualify for coverage due to their hours worked, they are notified and sent a “Princeton Health Care Plan Election Form” to elect or waive coverage under Princeton’s Consumer Directed Health Plan (CDHP). Employees are able to elect coverage for themselves as well as their eligible dependents under the CDHP. The CDHP is an IRS qualified high deductible health plan, which meets the minimum value requirements of the ACA and is administered by Aetna. The CDHP provides comprehensive in- and out-of-network coverage. The Prescription Drug Plan is integrated with the CDHP medical coverage and is administered through OptumRx. Since the CDHP is an IRS qualified plan, if employees elect this coverage, they have the option to open a Health Savings Account (HSA) through a bank. Additional information is available in the ACA Benefits Booklet. The Princeton Health Care Plan Election Form lists the monthly cost for the plan.

1095-C Frequently Asked Questions