Reporting Requirements, Employee Benefits Compliance, Large Employers

Health Care Information Reporting: Seven Things Employers Can Think About Now

reporting on health care

This article is by the IRS, with a few enhancements by Yours Truly.  The original list of 7 things is here (on the IRS website, at )

IRS Health Care Tax Tip 2016-75, October 26, 2016

If your organization is an applicable large employer, you must report information about the health care coverage you offered to your full-time employees. As an employer, it’s not too early to start thinking about these seven facts related to your information reporting responsibilities under the health care law (Affordable Care Act, or “ACA”).

1. The health care law requires ALEs to report information about health insurance coverage offered to its full-time employees and their dependents as well as to the IRS.

  • The ACA does not penalize ALEs if employees decline to enroll.

2. ALEs must report information about themselves, the coverage they offered – if any – and the individuals covered under the policy.

3. By January 31, 2017, ALEs are required to furnish a statement to each full-time employee that includes the same information that will be provided to the IRS a month or two later (see #5 below).

4. ALEs that file 250 or more information returns during the calendar year must file the returns electronically.

5. ALEs must file Form 1095-C, Employer-Provided Health Insurance Offer and Coverage with the IRS annually, no later than February 28, 2017 or March 31, 2017 if filed electronically. Forms 1095-C are filed accompanied by the transmittal form, Form 1094-C.

6. Self-insured employers that are applicable large employers, and therefore are also subject to the information reporting requirements for offers of employer-sponsored health insurance coverage, must combine reporting under both provisions by filing a single information return, Form 1095-C, and transmittal, Form 1094-C.

7. The ACA Assurance Testing System opens November 7, 2016 for tax year 2016 testing. Software developers – including employers and issuers who passed AATS for tax year 2015 – will not have to retest for tax year 2016; the Tax Year Software Packages will be moved into Production status. New participants need to comply with test requirements for tax year 2016. For more information, see Publication 5165, Guide for Electronically Filing ACA Information Returns for Software Developers and Transmitters.

Applicable large employers can find a complete list of resources and the latest news at the Applicable Large Employer Information Center.

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