What Employers should know about ACA Reporting Requirements
This article further explores the
- Reporting Requirements under section 6056 and 6055
- ACA 1094 and 1095-B/C Reporting Deadline
- Information Required for ACA 1095 Reporting
ACA Reporting Requirements -
- Updated september 14, 2020 - 8.00 AM
- Admin, ACAwise
This instruction would help employers to know their 2020 ACA Reporting Requirements.
When the Affordable Care Act was passed, the IRS updated their Internal Revenue Code to include Sections 6055 and 6056. Sections 6055 and 6056 of the IRC outline the protocol for reporting ACA compliance and offers of coverage to the IRS.
Reporting Requirements under
IRS Section 6056 states that Applicable Large Employers must provide minimum essential coverage to their full-time employees and report that to the IRS and furnish statements to their employees.
ALEs must use Forms 1094-C and 1095-C to report their ACA information under Section 6056.
Reporting Requirements under
IRS Section 6055 states that any person who provides minimum essential coverage to individuals must report the offered coverage information to the IRS and furnish statements to individuals. Minimum essential coverage includes government-sponsored programs, eligible employer-sponsored plans, individual market plans, and other coverage the Department of Health and Human Services designates as minimum essential coverage.
In other words, Section 6055 says that health insurance issuers or carriers, plan sponsors of self-insured group coverage, and executive departments/agencies of governmental units must report those they covered on Forms 1094-B and 1095-B.
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Reporting Form 1095-C, Employer-Provided Health Insurance Offer
IRS designed Form 1095-C for requesting ALEs to report the health coverage information offered to the employees. It also helps the IRS to determine whether an ALEs owe a payment under the employer shared responsibility provisions under section 4980H.
If you are an ALE, you must report the offer of coverage, covered individuals information to the IRS on time. You must also furnish the copies to the employees without fail.
You must also report to the IRS with Form 1095-C, for the information of the part time, retired, terminated, rehire employees. When reporting Form 1095-C, you must be aware of Section 4980H safe harbor & Offer of coverage codes.
2020 ACA 1094 and 1095-B/C Reporting Deadline
Information Required for 2020 ACA 1095 Reporting
To complete the Forms for Sections 6055 and 6056 reporting, you'll need the
- The covered individual or employee's data (name, address, and SSN/TIN)
- The plan provider's data (name, address, EIN, and contact info)
- For self-insured group health plans, the data of the plan sponsors (name, address, EIN, and contact info)
- The offer of coverage code for each recipient/employee, broken down by month
- The recipient/employee premium share of coverage, by month
- Any safe harbor relief codes that
- The covered individual's spouse and dependent(s) information, if applicable (name, SSN or DOB, and months covered)
Updates in 2020 ACA Reporting:
- IRS has confirmed to extend the recipient copy deadline to
March 02nd, 2020.
- The IRS has released 2020 draft Forms and instructions to help employers prepare to report on the health coverage offered to the employees in 2019. The final forms are expected to be issued before the end of the year.
- The other clear message on the draft version is to continue with the 2018 tax year reporting requirements.
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