By Dean Spina
The Affordable Care Act (ACA) imposes reporting requirements under Internal Revenue Code Section 6056 for "Applicable Large Employers" (an "ALE"). An ALE is an employer or aggregate group with fifty or more full time and full time equivalent employees. Under the reporting rules, these ALE employers must provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees.
This week the Internal Revenue Service (IRS) released final versions of forms for reporting under Section 6056. Instructions for the forms (1094-C and 1095-C), and an advisory publication (5196) were also released by the IRS.
This form is not required to be filed for the 2014 tax year, but it will be required for the 2015 tax year. The form may change next year, but filers are encouraged to begin to understand the type of information the IRS will require when the filing becomes mandatory.
Many ALE's are exempt from the "Play or Pay" provisions of ACA for calendar year 2015 because of a special transition rule for employers with 50-99 employees. This group of ALE's will be subject to Play or Pay in 2016.
UNFORTUNATELY, these employers in the 50-99 range are NOT exempt from the separate reporting requirements under the ACA.
Thus, employers with 50-99 employees must report coverage offered in 2015. If your company is within the 50-99 transition rule for the tax portion of ACA, you need to determine quickly how you will handle the reporting burden at the beginning of 2016.
Section 6055 Forms and Instructions
For questions regarding the ACA and IRS reporting requirements, please contact Dean A. Spina.