Applicable large employers (ALEs), which generally are entities that employed 50 or more full-time and fulltime-equivalent employees in the preceding calendar year, are required to report whether they did or did not offer health coverage to certain employees. To comply with this reporting requirement, the ALE must furnish Form 1095-C to the employee or former employee and file copies, along with transmittal Form 1094-C, with the IRS.

Small employers (under 50 full-time-equivalent employees) that sponsor level funded health plans are
also subject to reporting requirements.