Employers should be familiar with the new reporting obligations that are required under health care reform. All employers who offer medical coverage, regardless of size, will have some new reporting responsibilities under the Affordable Care Act.
Section 6055 Reporting
Section 6055 of the Internal Revenue Code requires insurers of insured plans or sponsors of self-funded plans to give information to individuals about the coverage they receive. Individuals must know if their coverage provides minimum value and if it is affordable according to health care reform rules. They need this information when they file their income tax return, in order to confirm that the individual had health coverage and avoid the individual mandate penalty.
Section 6055 reporting is accomplished through new IRS Forms 1095. These forms are distributed to employees. Form 1095-C is provided by an applicable large employer (an employer with 50 or more full-time equivalent employees) to its covered employees. Form 1095-B is issued to individuals by the insurance company for an insured plan, or by a small employer with a self-funded plan.
Section 6056 Reporting
Section 6056 of the Internal Revenue Code requires employers to tell the government about coverage they offer to full time employees and avoid the pay or play penalty.
Section 6056 reporting is accomplished through new IRS Forms 1094. These forms are filed with the IRS. Form 1094-C is used by an applicable large employer. The large employer will attach all of the Forms 1095-Cs that it gave to its employees with the IRS transmittal. 1094-B is the form a small employer with a self-funded plan will file with the IRS.
Other Forms
The Health Care Marketplaces will provide their enrollees a Form 1095-A.
Individuals who receive premium tax credits will file a Form 8962 with the IRS.
Individuals claiming an exemption from the individual mandate will file a Form 8965 with the IRS.
Employers must familiarize themselves with the new IRS health care reform reporting obligations.
