The IRS recently issued draft forms and instructions that certain employers must file in order to comply with the Employer Mandate reporting requirements of the Affordable Care Act ("ACA"). While these forms are in "draft" form, and the IRS has indicated that they may change based on public comment, the forms provide insight into the type of information that must be compiled in order to comply with these reporting requirements.
Under the ACA's reporting requirements, there are two reporting requirements that must be satisfied:
- The Employer-Provided Health Insurance Reporting Requirement >>
- The Health Coverage Reporting Requirement >>
These reporting requirements are effective for the 2015 Plan Year. The first reports are due in early 2016, but voluntary reporting for the 2014 Plan Year will be accepted by the IRS. The draft forms are very detailed and may require employers to provide information to which they do not have easy access.
We recommend that all employers that are subject to the ACA's Employer
Mandate, or that self-insure their medical plan, review these draft forms
to make sure they will be able to satisfy these requirements.
Employer-Provided Health Insurance Reporting Requirement
This requirement applies to all "large employers" subject to the ACA's Employer Mandate. If an employer has 50 or more "full time equivalent" employees, an employer is subject to the Employer Mandate. Under this requirement, a large employer must file two forms detailing information from the prior calendar year:
1. One or more Form 1094-C ("Transmittal"), which is a summary of the information being provided to the IRS on Forms 1095-C.
- CLICK HERE to view a copy of the draft Form 1094-C.
- CLICK HERE to view a copy of the draft instructions for Form 1094-C.
2. A separate Form 1095-C ("Return") for each employee detailing that employee's information. Note: Each employee must receive a copy of his/her Form 1095-C.
- CLICK HERE to view a copy of the draft Form 1095-C.
- CLICK HERE to view a copy of the draft instructions for Form 1095-C.
These forms will be used by the IRS to evaluate an employer's level of health coverage provided and enrollment for their employees as well as whether an employer owes payment under the Employer Mandate. Additionally, the forms will be used to determine an employee's eligibility for premium tax credits.
Employers with 50 to 99 employees and eligible for 2015 transition relief must file Form 1094-C and certify to their eligibility for such relief.
Health Coverage Reporting Requirement
This requirement is satisfied by completing and filing the Health Coverage Forms (Forms 1094-B and 1095-B). The responsibility for this requirement falls on the insurer for insured plans, and the employer for self-insured plans. Note: Large employers who self-insure must complete Part III of Form 1095-C rather than Form 1095-B.
- CLICK HERE to view a copy of the draft Form 1094-B ("Transmittal") .
- CLICK HERE to view a copy of the draft Form 1095-B ("Return").
- CLICK HERE to view a copy of the draft instructions for Form 1094-B and 1095-B.