2023 ACA Reporting Requirements for Employers
IRS ACA Reporting Requirements for 2023 - An Overview- Updated August 04, 2022 - 8.00 AM by Admin, ACAwise
When the Affordable Care Act was passed, the IRS updated their Internal Revenue Code to include Sections 6055 and 6056. These IRC sections outline the protocol for reporting ACA compliance and offers of coverage to the IRS.
These instructions will help employers better understand their
ACA reporting requirements.
What's new for 2023 ACA reporting?
No Additional Codes or Changes in ACA Forms
- In the month of July, the IRS released the draft version of Form 1095-B and 1095-C which clearly shows that there is no addition of 1095 codes or changes made in ACA forms.
The IRS might release the final instructions for 2023 at the end of this year. Stay updated with ACAwise to get the recent updates of the ACA Forms.
Changes in Prior Year ACA Forms
- Code 1T: This code applies to an Individual coverage HRA offered to the employee and spouse (no dependents), with affordability calculated by the employee's residence ZIP code.
- Code 1U: This code applies to an Individual coverage HRA offered to employee and spouse (no dependents) with affordability calculated by the employee’s primary employment site ZIP code.
IRS ACA 1095 Reporting Requirements under Section 6055
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.
Reporting ACA Form 1095-B, Health Coverage
The IRS designed Form 1095-B for health insurance issuers or carriers, plan sponsors of self-insured group coverage, and executive departments/agencies of governmental units to report those they covered on Forms 1094-B and 1095-B. It is used to report information about the individuals (employee, spouse, and dependents) who had certain health coverage for some or all months during the year.
Health coverage provider must file Form 1095-B for each of their recipients, as each provides information on the employee’s health insurance coverage for each month of the year.
In addition to filing this Form with the IRS, mandated filers must also furnish their recipients with a copy of the Form 1095-B.
ACA Reporting Requirements under Section 6056
The 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 health coverage information offered to their employees under section 6056.
Reporting ACA Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
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, section 4980H.
You must also report to the IRS using Form 1095-C, with information on your part time, retired, terminated, rehired employees. When reporting Form 1095-C, you must be aware of Section 4980H safe harbor and Offer of coverage codes.
Employers must file Form 1095-C for each of their employees, as each provides information on the employee’s health insurance coverage for each month of the year.
In addition to filing this Form with the IRS, mandated filers must also furnish their employees with a copy of the Form 1095-C.
ACA 1094 and 1095-B/C Reporting Deadlines for 2023
Employee copy distribution
Jan 31, 2023
Mar 31, 2023
Feb 28, 2023
Click here to know more about the State filing deadlines.
Information Required for 2023 ACA Form 1095 Reporting
To complete the ACA Forms under Sections 6055 and 6056, you'll need the following information:
- 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, provide the plan sponsor’s information (name, address, EIN, and contact info)
- The offer of coverage code for each recipient/employee, broken down by month
- The recipient/employee’s premium share of coverage, by month
- Any safe harbor relief codes that are applicable
- The covered individual's spouse and dependent(s) information, if applicable (name, SSN or DOB, and months covered)
Meeting your 2023 ACA Reporting Requirements
ACAwise helps to file your ACA Forms with the IRS, State and distribute the 1095 copies to your employees on-time. ACAwise handle all the special scenarios such as ICHRA, COBRA, Rehire, terminated, etc.
We provide two different reporting services for you to choose from, based upon your requirements.