ACA Reporting Requirements

On January 1, 2015, employers in the U.S. entered the new era of ACA health care reform and reporting. The employer and individual "shared responsibility" mandate will affect everyone to some extent. Employers with more than 50 (100 in 2015) fulltime (FT) and fulltime equivalent (FTE) employees must either offer coverage to FT employees, or risk paying a penalty.


In order for the IRS to manage the enforcement of the employer and individual mandates, employers with more than 50 FT and/or FTE employees, and self-insured groups are required to file IRS reports for 2015 plan years in January 2016.


Section 6055 reporting is required by "providers of coverage". It details all the individuals covered by the provider or health plan and which months they were covered.


Section 6056 reporting helps the IRS administer the employer "shared responsibility" provisions. It also provides employees with data to determine premium tax credit eligibility.


Section 6056 introduces two new tax forms, 1095-C & 1094-C, for the employer to provide their employees. 1095-C is a new tax document much like a W-2 or 1099 outlining the details of health coverage offered by the employer. This document is unique to each employee. 
Who Must File in January 2016?

All applicable large employers with 50 or more fulltime employees and fulltime equivalents, including large employers with between 50 and 100 fulltime employees and equivalents that are not subject to the "shared responsibility" penalty for 2015, are required to file the new tax forms whether the employer offers health insurance coverage.


We have created a 2015 Compliance Checklist for Employers with a step-by-step review of the ACA compliance rules. Also, we borrowed a portion of a presentation from Paylocity, a payroll software company, providing employers required to file 1095-C's an example of the forms and reporting capabilities they will need from their payroll system. 

Please feel free to contact us if you have any questions. 

Thank you, 
George Knox, CLU, ChFC
214.695.2904 (mobile) 214.443.1400 (office) |

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