Understanding IRS Reporting for ACA Compliance

50 Pages·2015·1.25 MB·English

by  Carl L. Williams

Understanding
IRS Reporting for
ACA Compliance
Presented by Dianna Palmer, Ed.D., PHR
Client Success Advisor
The anticipated outcomes of this
webinar are:
• Participants will have a deeper understanding
of IRS compliance for ACA
• Participants will understand the data
requirements for forms 1094 C and 1095 C
• Participants will understand the consequences
of non-compliance
Purpose of IRS Reporting for ACA
• Determine employee shared responsibility penalty
for health insurance cost
• Determine employer shared responsibility
assessment for health insurance cost
What are the information reporting
requirements for ACA compliance?
• Applicable Large Employers (ALE’s) must file an ACA
information return with the IRS (section 6056)
• ALE’s must provide statements to full-time
employees about their insurance coverage
• Self-insured employers are required to report
information to the IRS about the health coverage
they provide (section 6055).
Information reporting requirements – Con’t
• Requirements go into effect for the 2015 calendar
year, which will be reported to the IRS in 2016.
• Relief is available for calendar 2015 reports, but only
if the employer can demonstrate a good faith effort
to comply (time extensions to amend incorrect or
incomplete reports).

Methods of Reporting
• General reporting method
• Alternative reporting method
General Reporting Method
• Form 1094-C (transmittal)
• Form 1095-C (employee statement)
• Other forms the IRS may designate
• For self-insured employers, Form 1095 C satisfies the
reporting requirements for section 6055
Alternative methods of reporting
• Qualifying Offer Method (with transition
relief for 2015)
• 98 Percent Offer Method
Qualifying Offer Method

• A qualifying offer is an offer of a “bronze level” or
higher plan where the cost to the employee for
employee‐only coverage is less than about $1,100 in
2015 (9.5 percent of the Federal Poverty Level).
• Also, the employer must offer the plan to all
members of the employee’s family to be eligible to
use this reporting method.