Are you an OnlyFans creator expanding your business by hiring employees? This guide is designed specifically for OnlyFans creators who are taking the step to become employers. We’ll cover everything you need to know about Affordable Care Act (ACA) compliance and the filing of Form 1094-C. Understanding these requirements is crucial, not only to avoid costly IRS penalties but also to ensure your business can grow smoothly and sustainably.
With the growth of your OnlyFans business, hiring employees brings new responsibilities, including the need to report health insurance coverage to the IRS. Form 1094-C, required under the Affordable Care Act (ACA), is a key part of this process. This article will help you understand the scope of ACA compliance, the purpose of Form 1094-C, and why mastering these requirements is essential for your business’s continued success.
What is the 1094 Tax Form?
Form 1094-C is a document used by companies that qualify as Applicable Large Employers (ALEs) to meet their ACA obligations. The IRS defines an ALE as an employer with 50 or more full-time employees, including full-time equivalent employees, during the prior calendar year. IRS Forms 1094-C and 1095-C are filed by employers that are required to offer health insurance coverage to their employees under the Affordable Care Act.
Form 1094-C serves as a summary of the 1095-C information returns and is only submitted to the IRS. For OnlyFans creators hiring employees or considering expanding their workforce, understanding Form 1094-C is essential. This form essentially serves as a “cover sheet” summarizing health insurance information filed for employees, ensuring both the IRS and employees are informed of their coverage.
Form 1094-C: A Summary Transmittal for 1095-C Forms
Form 1094-C acts as a summary transmittal for all 1095-C forms you file for your employees. It is only submitted to the IRS and is required for employers under the ACA. This means that while your employees receive Form 1095-C detailing their individual health coverage, the IRS receives Form 1094-C as an overview of your company’s compliance.
Form 1094-C vs. Form 1095-C: Key Differences
To clarify the relationship between these forms, here’s a quick comparison:
| Form 1094-C | Form 1095-C |
|---|---|
| Serves as a transmittal summary for all 1095-C forms submitted by the employer | Provided to each employee, detailing their health insurance coverage for the year |
| Only submitted to the IRS | Sent to both the IRS and each employee |
| Confirms employer’s ACA compliance and summarizes workforce coverage | Lists specific coverage details for each employee |
Understanding the distinction between these forms is important before moving on to the filing requirements.
Who Needs to File the 1094 Tax Form?
Form 1094-C applies mainly to:
- Applicable Large Employers (ALEs): If you qualify as an ALE, you must file Form 1094-C to report employee health insurance coverage. To be considered an Applicable Large Employer (ALE), an organization must employ more than 50 Full-Time Employee Equivalents (FTEs).
- Self-Insured Employers: If you directly provide health insurance to employees (rather than through a third-party provider), you are required to report this coverage to the IRS as part of ACA compliance.
- Employers with Full-Time Equivalent (FTE) Employees: If you’re uncertain about your ALE status, calculating your FTE employees can help determine if you’re required to file a 1094 tax form.
Additionally, Form 1094-B is used by smaller employers providing self-insured health coverage to report employee enrollment under section 6055.
Many OnlyFans creators rely on contractors, but hiring employees can be a strategic move as their business grows. Knowing the IRS filing requirements, forms, and deadlines will help you stay compliant and avoid penalties.
Key Sections of Form 1094-C
Here’s an overview of the main sections on Form 1094-C:
- Employer Information: Requires your business’s legal name, address, and Employer Identification Number (EIN).
- ALE Member Information: Confirms ALE status and includes workforce details.
- Certification of Eligibility: Specifies any certifications, like the Qualifying Offer Method, indicating minimum essential coverage was offered at affordable rates.
- Aggregated ALE Group Members: Indicates if your company is part of a controlled group with other entities.
- Monthly Information: Documents whether coverage was offered each month and the number of full-time employees for each month.
How to File 1094 Tax Form
Step 1: Compile Employee Information
Gather data for each employee, including hours worked, type of coverage offered, and coverage dates.
Step 2: Complete Form 1094-C
Fill out each required section, paying close attention to the ALE Member and Monthly Information fields.
Step 3: Submit the Form Electronically
If you have more than 250 employees, you must submit the form through electronic filing. Smaller employers may choose paper filing.
With your form completed, it’s important to be aware of the filing deadlines to avoid penalties.
Filing Deadlines for 1094 Tax Form
- Paper Filing Deadline: February 28 each year.
- Electronic Filing Deadline: March 31 each year.
Missing these deadlines can lead to potential penalties from the IRS, so it’s essential to submit Form 1094 accurately and on time.
Penalties for Non-Compliance
The IRS issues penalties for late submissions, inaccuracies, or failure to file Form 1094-C. These penalties can add up quickly, particularly for small businesses unfamiliar with payroll and HR requirements.
- Penalties in 2023 range from $50 to $580 per form, depending on how late or inaccurate the filing is.
- Repeat offenses can increase costs, impacting your business’s ability to expand.
- Failing to file or providing incorrect information can also result in additional scrutiny from the IRS.
Why 1094 Tax Form Matters for OnlyFans Creators
As your OnlyFans business grows, hiring employees may be an essential step in scaling operations. Transitioning from a solo creator to an employer brings expanded tax obligations, including ACA compliance. Filing Form 1094 helps the IRS track ALE compliance, ensuring employees have access to minimum essential coverage.
Even if you don’t yet have 50 full-time or part-time employees enough to qualify as an ALE, understanding the 1094 tax form can help you future-proof your business. Given the unique challenges in the OnlyFans industry, establishing strong HR and compliance practices early on can support long-term growth.
Tips for Staying ACA-Compliant
- Track employee hours using payroll software to monitor full-time, part-time, and seasonal employees.
- Offer minimum essential health coverage to employees if you qualify as an ALE.
- Monitor employee counts regularly, as crossing the ALE threshold increases your filing obligations.
- Consult an accountant familiar with ACA reporting requirements to prevent errors and potential penalties.
FAQs
Do OnlyFans creators need to file a 1094 tax form?
Yes, if you hire employees and are nearing the ALE threshold, you must understand ACA reporting requirements. Form 1094 is mandatory for businesses with 50 or more full-time or equivalent employees. If you’re unsure whether you need to file, it’s always a good idea to consult a tax professional to avoid any penalties.
What’s the difference between 1094 tax form-C and 1095-C?
Form 1094-C is a summary sent to the IRS, while Form 1095-C is a summary provided to employees, detailing their health insurance coverage. Form 1095-C provides a breakdown of the health coverage offered to employees, whereas Form 1094-C provides the aggregate data to the IRS. Both forms are necessary to comply with the Affordable Care Act reporting requirements.
How do I determine if I’m an Applicable Large Employer (ALE)?
Calculate the company’s average number of full-time employees and full-time equivalent employees per month over the previous calendar year. The IRS defines full-time as anyone working 30+ hours per week. If your business meets the 50-employee threshold, you’ll be considered an ALE and subject to the ACA requirements.
What are the filing deadlines for Form 1094-C?
For the 2025 calendar year, paper filing is due by March 2, 2026, since February 28, 2026, falls on a weekend. Electronic filing is due by March 31, 2026. If the deadline falls on a weekend or holiday, the filing is due the next business day.
Conclusion
Understanding the 1094 tax form and its role for OnlyFans creators hiring employees is essential for responsible business growth. As ALEs, creators must submit payroll and health insurance information to the IRS as proof of ACA compliance. Through accurately filing Form 1094 on time, you minimize risks and create a solid foundation for your business’s future. OnlyFans creators stepping into the role of employers face unique challenges, but with awareness and preparation, ACA requirements can be managed smoothly. Remember to track your workforce, meet reporting deadlines, and seek professional advice as needed to ensure compliance and support ongoing success.
At The OnlyFans Accountant, we help OnlyFans creators understand and navigate the complexities of tax forms like Form 1094-C, making sure your business stays compliant with ACA requirements. We specialize in supporting business owners who hire employees, offering expert advice on filing deadlines, penalties, and tax planning strategies. Contact us today to keep your business compliant and on track with all necessary tax filings.