Starting in 2016, all “Applicable Large Employers”–meaning those with 50 or more employees—will need to file reports with the IRS regarding whether minimum essential healthcare coverage has been made available to employees under the Patient Protection and Affordable Care Act, also known as Obamacare. The information reporting requirements will first be effective for coverage that was offered (or not offered) in 2015. The information reported will be used to determine whether an employer owes a payment under the employer mandate and for determining employee eligibility for the premium tax credit.
Employer reports will be made on IRS Forms 1094-C and 1095-C. On August 6, 2015, the Internal Revenue Service released substantially final instructions for reporting employee health coverage on those Forms. The instructions specify who must file, how to file, and what to file with the IRS.
For the first year, the IRS will not impose noncompliance penalties on employers that make good faith efforts to meet the reporting requirements. Specifically, relief from penalties for reporting incorrect or incomplete information may be provided for 2015 information included on returns and statements filed in 2016. However, penalties will still apply to employers that cannot show a good faith effort to comply or fail to timely file the required forms.
More detailed information on the Applicable Large Employer reporting requirements is available from the IRS at the following link: http://www.irs.gov/Affordable-Care-Act/Employers/Questions-and-Answers-on-Reporting-of-Offers-of-Health-Insurance-Coverage-by-Employers-Section-6056.
© 2015 Houghton Vandenack Williams
For more information, Contact Us