ACA Employer Reporting…Continued

A previous post informed about an upcoming (voluntary in 2015; mandatory in 2016) Affordable Care Act (ACA) compliance requirement requiring employers (small and large) and health insurers to report on health insurance coverage offered to employees.
(See – http://sstevenshealthcare.blogspot.com/2014/03/aca-employer-reporting-requirements.html )

Recently the IRS released draft versions of various forms that employers will need to disclose detailed information to both their employees and the IRS.  The purpose of the reporting is to assist the federal government in enforcing the ACA’s individual mandate, employer mandate, and premium subsidy provisions.

Here’s what the IRS released, in draft form:

  1. Form 1095-B [Reporting of Minimum Essential Coverage]: ALL employers (small and large) and health insurers will be required to indicate the type (whether or not minimum essential coverage) and time frame of coverage, to both the IRS and covered individuals.  (Note: This information enables the IRS to monitor/enforce the Individual mandate.)
  2. Form 1095-C [Employer-Provided Offer/Coverage]: ONLY LARGE employers will be required to file with the IRS, and disclose to employees, whether  or not coverage was offered. (Note: This information enables HHS/IRS to enforce/monitor the employer mandate and subsidy eligibility.
  3. Form 1094-B [Transmittal/Health Coverage Information]: This is the form used to “transmit” the aforementioned Form 1095-B to the IRS.
  4. Form 1094-C [Transmittal/Offer/Coverage]: This is the form used to “transmit” the aforementioned Form 1095-C to the IRS.

IMPORTANT: Applicable, large employers that are self-funded are allowed to consolidate the filing requirements of nos. 1 & 2 by filing only Form 1095-C.

Copies of the IRS draft forms are available by clicking here: http://apps.irs.gov/app/picklist/list/draftTaxForms.html

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