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Top 7 1095-C E-File Software for 2025 ACA Compliance

The Affordable Care Act (ACA) requirements grow more complex every year, and a single mistake during reporting can put your compliance reputation on the line. Handling ACA rules within an organization can be challenging, especially for small businesses or independent contractors who already manage many responsibilities.

Form 1095-C is known to cause stress for employers because every Applicable Large Employer (ALE) with 50 or more full-time staff must file it to detail employee health coverage and avoid penalties.

If you want to stay compliant without drowning in paperwork, then the right choice to make is to choose a reliable 1095-C filing software. This blog will provide you with top 7 e-filing software that you can use to simplify your information return filing process.

Understanding Form 1095-C

The Form 1095-C includes detailed information about the health coverage provided by the employer to the employees. The form is filed and furnished to a full-time employee for at least one month of the calendar year of Applicable Large Employers (ALE). The ALE is required to report the health coverage information, like coverage offer, premium cost, and other details, covering all 12 months, for each employee. Information on this form helps in determining a taxpayer’s eligibility for credits, like premium tax credits.

Key details the form requires include:

  • Coverage status for each employee, month by month
  • Affordability codes showing how coverage was measured
  • Safe harbor indicators that determine whether employers avoid certain fines

Who’s responsible for filing?

  • Any employer with 50 or more full-time or equivalent employees
  • Self-insured Applicable Large Employers (ALEs) report coverage details in Part III of Form 1095-C.

This form helps the IRS check whether large employers are following the ACA rules. And here’s the pain point: the complexity isn’t just in filling out the form once. It’s in ensuring accuracy across dozens or hundreds of employees, then keeping track of both employee distribution and IRS submission deadlines. Without the right system, mistakes are almost guaranteed.

TY 2025 Deadlines You Must Know About

  • February 28, 2026: Last date for paper-filing the form (for those filing fewer than 10 returns).
  • March 31, 2026: Last date for e-filing the form.
  • March 2, 2026: Last day to send recipient copies. (since Mar 1, 2026 is a Sunday)

You must know the risks of missing a deadline:

  • The penalty for failure to file or furnish a correct return is $330 per form for 2025, with amounts adjusted annually for inflation.
  • The maximum annual penalty is about $3.5 million for large employers (with lower caps for smaller employers), subject to annual inflation adjustments.
  • Penalties with no maximum cap if the IRS deems it intentional.
  • Frustrated employees who don’t get their coverage forms on time, leading to trust issues and potential HR complaints.

Without the right software, the deadlines can slip unnoticed, and if they do, then costly fines will quickly follow.

How to Choose the Right 1095-C E-File Software?

Picking the wrong software can expose you to multiple headaches apart from simply wasting your time and resources. You could face IRS rejections, fines, and even data breaches. Before you choose a platform that saves you from this stress, here’s what really matters:

  • Ease of use: If the dashboard feels like a puzzle, you’ll burn hours learning it—and still risk errors when deadlines are looming.
  • Integrations: Without direct links to payroll and HR tools like QuickBooks or Xero, you’ll end up manually re-entering data. That means more mistakes and wasted effort.
  • Security: Remember, you’re dealing with protected health information (PHI). Weak security exposes you to HIPAA violations, audits, and loss of employee trust. Look for SOC 2, ISO 27001, and HIPAA compliance.
  • Pricing: Costs climb quickly when you’re paying per form. Hidden fees or unclear pricing models can wreck budgets for SMBs.
  • IRS compliance: The platform must integrate directly with the IRS AIR system and flag errors before submissions.
  • Support: Filing season always comes with last-minute stress. If your vendor doesn’t offer responsive support, you’ll be stuck scrambling alone when every minute counts.

The right platform should reduce stress, protect sensitive data, and save money, not add new risks.

In short: get it right, and ACA filing becomes routine. Get it wrong with the wrong tool, and you risk expensive penalties.

Top 7 1095-C E-File Software Solutions for 2025

Here is a list of the top 1095-C e-file software solutions that can help you balance simplicity, security, and cost, without cutting corners.

1. Tax1099 by Zenwork

Tax1099 stands out as a top-rated solution for e-filing 1099 forms, streamlining the process with ease. It allows users to upload forms directly to the IRS, SSA, and participating states in the Combined Federal State Filing (CFSF) program, reducing stress with its planned eFiling function to guarantee timely and legal tax filings. With features like bulk uploads, TIN matching, and 24/7 AI tax assistance, Tax1099 is a leader in its field, recognized with awards like the 2024 Accountex User Favorite Award.

Key features

  • Excel drag-and-drop, QuickBooks/Xero add-ins, NetSuite, nightly SFTP, free REST API.
  • Auto-creates XML for every separate-filing state.
  • Branded employee portal, optional USPS First-Class mail, seven-year PDF archive.
  • SOC 2 Type II, ISO 27001, MFA; business-hour live support; 24/7 AI assistant available in-product; perform pricing under $1 at scale.

Suitable For: Payers require a single gateway with reliable assistance for both federal and multi-state ACA reporting.

2. ACAwise

ACAwise is a comprehensive, full-service solution for tracking and reporting compliance with the Affordable Care Act. The software is best suited for Applicable Large Employers (ALEs), third-party service providers, compliance consultants, accountants, payroll businesses, human resource departments, and those who oversee monitoring ACA compliance.
Key features

  • QuickBooks, Xero, NetSuite sync; CSV fallback and OAuth API.
  • It can automatically create Line 14/16 codes and confirm the affordability of safe harbors.
  • Direct state XML service for every mandated jurisdiction.


Suitable For
: Compliance teams that desire complete state-mandate concierge services in addition to code automation.

3. ADP SmartCompliance

ADP SmartCompliance, a cloud-based compliance management suite, works with your current ERP, payroll, and HR systems. The platform assists US companies of all sizes in streamlining several compliance-related tasks, such as W-2 administration, wage payments, employment tax, and health compliance. The effort and error margins related to manual compliance duties are decreased by its automated procedures.
Key features

  • Integrates deeply with ADP payroll and benefits data.
  • Real-time eligibility tracking and affordability alerts.
  • Bulk corrections and Letter 226-J analytics.

Suitable For: Large businesses that are now on ADP want seamless ACA add-on functionality.

4. BenefitScape

BenefitScape can function independently or integrate easily with your current service providers, including Payroll, HRIS, HCM, or Benefits Administration systems. The software’s ACACompliance services can be tailored to function smoothly with any employer configuration, any existing data formats, and at any point of the ACA Compliance process due to the specialized ACATech platform, in-house specialists, and operational flexibility.
Key features

  • They give penalty relief advice for Letter 226-J or Notice 972CG.
  • Secure options like SFTP or API intake, along with a white-label employee portal.

Suitable For: Companies that want ACA compliance and expert help.

5. Yearli by Greatland

Yearli by Greatland is a comprehensive W-2, 1099, and 1095 filing program for the federal government, states, and recipients. To accommodate varying budgets and business requirements, Yearli provides three plan options: Core, Performance, and Premier. While the Performance plan adds ACA reporting and TIN matching capabilities, the Core plan offers a straightforward, user-friendly online W-2 and 1099 filing tool. Advanced features like improved reporting, flexible filing options, and team management are available with the Premier package.
Key features

  • Premier (adds API & archive), Performance (adds state XML + TIN Match), and Core (basic).
  • Peachtree, Sage, and QuickBooks are imported, and there are quick print-and-mail choices.

Suitable For: CPAs or payroll bureaus serving many small employers.

6. Paylocity ACA Enhanced

Paylocity has a full HCM platform with payroll and HR management features. It helps businesses to effectively manage payroll, time, and attendance, employee lifecycle management from pre-hire to offboarding, benefits administration, performance evaluation, and reporting analytics in a single, integrated system.
Key features

  • Real-time compliance dashboard inside Paylocity HRIS.
  • Automated Line 14/16 code mapping from payroll hours and deductions.
  • Role-based access, MFA, and SOC 2 security.

Suitable For: Employers requiring in-platform ACA support who now use Paylocity for payroll and HR.

7. IRS AIR UI (Baseline)

Insurance firms, self-insured enterprises, and companies that offer health insurance to their employees are required by the Affordable Care Act (ACA) to file information returns with the IRS detailing each employee’s health insurance coverage. The AIR system by the IRS allows you to electronically file ACA information returns.
Key features

  • Free e-filing via the IRS AIR system
  • Requires manual XML creation in IRS schema; no code audit, no state filing, no TIN checks
  • Technical platform best suited for IT teams or providers, not a simple online form

Suitable For: Tech-savvy payers willing to hand-build XML and have fewer than 50 forms and no state requirements.

FAQs

Is the 10-return e-file rule active?

Yes. The 10-return e-file rule is now active, and the IRS requires electronic filing if you are submitting an aggregate of 10 or more returns across all form types, including 1042-S, 1099, W-2, and 1095.

Do tools validate the name/TIN before submission?

Most e-filing platforms include pre-validation checks to catch pre-formatting errors, mismatches in required fields, and AIR (Affordable Care Act Information Returns) name and TIN injections. However, the IRS TIN Matching Program does not extend to Form 1095-C, meaning the validation is limited to structure and format, and not real-time IRS verification.

Do separate state filings apply?

Yes, several states have independent filing mandates for ACA and information returns, including California, the District of Columbia, Massachusetts, New Jersey, and Rhode Island. These must be filed separately along with the IRS submission.

Can one account manage multiple EINs?

Yes, most e-filing platforms support multi-EIN dashboards; however, it might change as per the plan you subscribe to. So, verify before confirming and paying for the plan.

What if the IRS rejects my file on March 31?

If your submission is rejected by the deadline, which is March 31, you should correct and resubmit within 30 calendar days to keep the lowest penalty tier.

Does IRS authorization equal endorsement?

No. The IRS authorization only confirms service provider’s technical capability; it doesn’t endorse or recommend the provider’s services, compliance, or prices.

Is the Form 8809 extension available?

Yes, every listed provider can e-file Form 8809 for a 30-day IRS extension.

The Bottom Line

The IRS isn’t easing up on ACA rules; it’s tightening them. Hence, businesses should choose a filing platform that reduces errors, keeps data secure, and takes the pressure off during crunch time. Among the options, Tax1099 is the standout. At $0.68 per form, it’s not just affordable, it’s built with features that actively prevent mistakes that lead to IRS notices and penalties.

If ACA compliance has ever felt like a burden, now is the time to lift it. Don’t wait until penalties hit your inbox file securely with Tax1099.