Affordable Care Act Reporting Requirements | WageWorks

 

affordable care act reporting requirements

The last few years have been a roller coaster for the Affordable Care Act. Such turmoil still has people asking: will it stay or will it go? Here's what you need to know for and beyond. Dec 21,  · On Friday, November 18, , the IRS issued notice extending the due dates for the Affordable Care Act’s (ACA) health plan and employer information reporting requirements. Specifically, this guidance. Tax-Exempt Hospitals - Additional Requirements. The Affordable Care Act added new requirements for charitable hospitals (see Notice (PDF) and Notice (PDF)). On June 26, , the IRS published proposed regulations that provide information on the requirements for charitable hospitals relating to financial assistance and emergency.


Affordable Care Act Tax Provisions | Internal Revenue Service


Certain employers are required to report to the IRS information about whether they offered health coverage to their employees and if so, information about the coverage offered.

This information also must be provided to employees. These FAQs address these reporting requirements, affordable care act reporting requirements. More detail about these information reporting requirements under section is available on the Information Reporting by Applicable Large Employers page.

Under section H, the employer shared responsibility provisions, certain employers, affordable care act reporting requirements, called applicable large employers, or ALEs, are required to offer qualifying health coverage to their full-time employees and their dependents or potentially be liable for an assessable payment, if at least one full-time employee receives the premium tax credit for coverage in the Marketplace. Section requires employers that are ALEs under the employer shared responsibility provisions to file information returns with the IRS about whether they offered health coverage to their full-time employees and their dependents and, if so, information about the offer of coverage.

ALEs must also provide a copy of the information to the employee. In either case, affordable care act reporting requirements, these reporting requirements apply to each separate entity, and each separate entity is referred to as an applicable large employer member ALE Member.

In addition, the IRS and the employees of an ALE Member will use the information provided as part of the determination of whether an employee and his or her family are eligible for the premium tax credit under section 36B. ALE Members that sponsor self-insured group health plans also are required to report information about employees including former employees and their spouse, dependents, and other family members who enroll in the self-insured coverage; these information reporting requirements for providers of minimum essential coverage apply under section ALE Members that sponsor self-insured affordable care act reporting requirements health plans generally provide the information required under both sections and on Form C and Form C.

The IRS and individuals will use the information provided under section to verify compliance with the individual shared responsibility provisions under section A. For more information see the section FAQs and for details about the section information reporting requirements and additional guidance on how to complete Form C and Form C, see the Questions and Answers about Information Reporting by Employers on Form C and C.

Information reporting under section was first required with respect to coverage offered or not offered in The regulations under section provide further guidance on the information reporting requirements for ALEs, and the regulations under section provide guidance on the information reporting requirements for providers of minimum essential coverage.

Employers subject to the employer affordable care act reporting requirements responsibility provisions, called applicable large employers or ALEs, are required to affordable care act reporting requirements under section An ALE is an employer that employed an average of at least 50 full-time employees including full-time equivalent employees on business days during the preceding calendar year.

An Aggregated ALE Group refers to a group of employers treated as a single employer under section baffordable care act reporting requirements, cm or o. An ALE Member is a member of the Aggregated ALE Group for a month if it is treated as a single employer with the other members of the group on any day of the calendar month.

The reporting requirements under section apply to each ALE Member separately. This is the case even if a particular ALE Member does not employ enough employees to meet the full-time-employee threshold. For purposes of the information reporting requirements under sectiongovernment entities, churches, and a convention or association of churches should determine whether a person or group of persons is an ALE and whether a particular entity is an ALE Member in the same way they made those determinations for purposes of the employer shared responsibility provisions under section H.

Section applies to all employers that are ALE Members, regardless of whether the employer is a nonprofit, tax-exempt or government entity including federal, state, local, and Indian tribal governments.

An ALE Member that does not have any employee who was a full-time employee in any month of the year that is, in general, no employees or no employees who averaged at least 30 hours of service per week in any month is not required to report under section An ALE Member is required to report if it has one or more employees who were full-time employees for any month of the year.

But see the next question regarding information reporting under section for ALE Members that sponsor self-insured health plans that may be required on Form C and Form C if those ALE Members have no full-time employees.

Generally, yes. While an ALE Member without any full-time employees is not required to report under sectionan ALE Member that sponsors a self-insured health plan in which any employee or a spouse or dependent of any employee has enrolled is required to file Form C and Form C, to satisfy the section information reporting requirements for providers of minimum essential coverage.

This is the case for any individual who was an employee or spouse or dependent of an employee for any month of the year, whether or not the employer has any full-time employees and whether or not the employee is a full-time employee.

However, for an individual who enrolled in coverage but was not an employee in any month of the year and whose coverage was not a result of the relationship to the employee, such as a spouse or dependentthe employer may file Forms B, Transmittal of Health Coverage Information Returns and B, Health Coverage, or Forms C and C for that individual, affordable care act reporting requirements.

For more information on reporting of enrollment information for non-employees, see the Instructions for Forms C and C. An employer that is not subject to the employer shared responsibility provisions is not required to report under section Thus, an employer that employed fewer than 50 full-time employees including full-time equivalent employees during the preceding calendar year is not subject to the reporting requirements of section An employer that is not an ALE Member that sponsors a self-insured health plan in which any individual has enrolled is not subject to the reporting requirements of section and should not file Form C or Form C.

However, the employer is subject to the reporting requirements under section for providers of minimum essential coverage. The employer will generally satisfy its reporting obligations under section by filing Form B and Form B for employees and spouses and dependents of employees who enrolled in coverage.

An ALE Member is required to report information about the coverage, if any, offered to each of its full-time employees, affordable care act reporting requirements, including whether or not an offer of coverage was made. This requirement applies to all ALE Members with full-time employees, regardless of whether they offered coverage to all, none, or some of their full-time employees. For each of its full-time employees, the ALE Member is required to file Form C with the IRS and furnish a copy of Form C to the employee, regardless of whether coverage was or was not offered to the employee.

Therefore, even if an ALE Member does not offer coverage to any of its full-time employees, it must file returns with the IRS and furnish statements to each of its full-time employees to report that coverage was not offered. The section regulations provide a general method that all ALE Members may use for reporting to the IRS and for furnishing statements to full-time employees, and also provide alternative reporting methods for eligible ALE Members.

If an ALE Member is not eligible to use either one of the alternative reporting methods for some or all of its employees, the ALE Member must use the general method for those employees. In any case, the alternative reporting methods are optional, and an ALE Member may choose to report for all of its full-time employees using the general method even if an alternative reporting method is available. To simplify the section reporting process, certain information required to be reported to the IRS and furnished affordable care act reporting requirements full-time employees is reported through the use of indicator codes rather than by providing more detailed information.

An ALE Member using the general method with employees participating in a self-insured plan also uses Form C to satisfy the reporting requirements under section for providers of minimum essential coverage, by filling out a separate section Part III of the Form C.

Part III was designed to allow ALE Members that sponsor self-insured group health plans to combine reporting to satisfy both the section reporting requirements and the section reporting requirements, as applicable, on a single return.

The requirement to file and furnish a section return and, if the employer sponsors a self-insured plan, the requirement to file a section return under the general method also may be satisfied by using a substitute form. Consistent with the general rules governing substitute forms, the substitute form must include all of the information required on Form C and Form Affordable care act reporting requirements and satisfy all form and content requirements as specified by the IRS.

Two alternative methods of reporting under section were developed to minimize the cost and administrative burdens for employers. The alternative reporting methods, which are available in cases where simplified reporting provides sufficient information for employees and the IRS, may permit employers to provide less detailed information than under the general method for reporting. These simplified alternative reporting methods and the conditions for using them are described in detail in Subsections A through D of Section X of the preamble to the section regulations and in the Instructions for Forms C and C.

The alternative reporting methods are:. The Qualifying Offer method allows an employer to complete the Form C under simplified rules and to furnish to certain full-time employees a document other than the Form C. To be eligible to use the Qualifying Offer method, the ALE Member must certify that it made a Qualifying Offer to one or more of its full-time employees for all calendar months during the calendar year in which the employee was a full-time employee for whom an employer shared responsibility payment could apply.

An ALE Member reporting under the Qualifying Offer method may furnish a affordable care act reporting requirements statement to an employee that received a Qualifying Offer for all 12 months of the calendar year rather than furnishing a copy of the Form C that will be filed with the IRS. In general, however, an employer that sponsors a self-insured plan may not use the alternative statement for any employee who has enrolled in that self-insured coverage because the employer is required to report that coverage on Form C, affordable care act reporting requirements.

For more information on how the 9. The ALE Member is still required to file and furnish Forms C for all its full-time employees who were full-time employees for one or more months of the calendar year.

An ALE Member must generally file Form C and Form C on or before February 28 March 31 if filed electronically of the year immediately following the calendar year for which the offer of coverage information is reported. However, see the questions below regarding an extension of these dates that was in effect for reporting due in Regulations under section address extensions of time to file information returns. Under certain conditions, ALEs may also request additional extensions of time to file.

For additional information see the Instructions for Forms C and C. An ALE Member must generally furnish Form C on or before January 31 of the year immediately following the calendar year to which the information relates. And under the section regulations, the IRS may grant affordable care act reporting requirements of time of up to 30 days to furnish Form C for good cause shown.

Each Form C is counted as a separate return, and only Forms C are counted in applying the return threshold for section reporting. The regulations require that, for each full-time employee to whom the information is furnished, the ALE Member must obtain consent from the employee before Form C may be furnished electronically.

Statements reporting coverage under an expatriate health plan, however, may be furnished electronically unless the recipient explicitly refuses to consent to receive the statement in an electronic format. But see the question and answer above for the requirements that must be met to furnish employee statements electronically. This requirement applies for Forms W-2 Wage and Tax Statement under the provisions of sectionaffordable care act reporting requirements, but does not apply for a Form C.

Also note that if the employer furnishes a Form C to the employee under these circumstances and the relevant information changes for example, the employee is rehired before the end of the yearthe employer will need to furnish an updated Form C to the employee reflecting the updated information as filed with the IRS.

XYZ may file separate Forms C for Division A and Division B, but must designate one of them as the Authoritative Transmittal reporting combined employer-level data including both divisions.

Each subsidiary is an ALE Member that is required to separately satisfy the reporting requirements. Note that a full-time employee of an ALE Member may in some circumstances receive a Form C and a separate form B reporting coverage information under a self-insured plan sponsored by a related employer for instance, a DGE that has been delegated reporting authority under section Back to top. Section and the regulations provide that an ALE Member that is a governmental unit defined as the government of the United States, any State or political subdivision thereof, or any Indian tribal government as defined in section a 40 or subdivision of an Indian tribal government as defined in section dmay report under section on its own behalf or may designate another person or persons, affordable care act reporting requirements, including another entity, to report on its behalf.

A person may be designated to file the return and furnish the statements under section on behalf of the ALE Member if the person is part of or related to the same governmental unit as the ALE Member. A government entity that is appropriately designated to file for another governmental unit is referred to as a Designated Government Entity DGE. The DGE must agree that it is the person appropriately designated by the governmental unit to report for the governmental unit and that it is responsible for reporting under section on behalf of the ALE Member.

Thus, the DGE is subject to the information reporting penalty provisions of sections and An employer that is a governmental unit that sponsors a self-insured health plan may designate a DGE to satisfy its reporting obligations under section The procedures for a governmental unit to designate a DGE for reporting under section are the same as those for designating a DGE for reporting under section as described in the question above, and the regulations under section As with the designation under sectiona governmental unit that designates a DGE for reporting under section remains subject to any potential liability under section H.

An employer that is a governmental unit that sponsors a self-insured health plan may designate a DGE for its reporting obligations under sectionas discussed in the question above, but decide not to designate a DGE for its reporting obligations under section For details on which forms to complete and how, see the Instructions for Forms C and C.

Each governmental unit that is an ALE Member must file a single Authoritative Transmittal, affordable care act reporting requirements, Form C, containing the aggregate employer-level data for the governmental unit including the total number of full-time employees and the total number of employees of the governmental unit for each month of the calendar year, regardless of the number of Form Cs transmitted with that particular Form C.

In that case, the Form C filed by County X covering the remaining full-time employees would not indicate that it is an Authoritative Transmittal. ALE Members may enter into arrangements with issuers, other ALE members or third parties to have the other party file the return with the IRS, furnish the statements to its employees, affordable care act reporting requirements, or both.

Affordable care act reporting requirements a person who prepares returns or statements required under section is a tax return preparer, that person will be subject to the requirements generally applicable to tax return preparers. Additionally, there must be only one Form C for each full-time employee with affordable care act reporting requirements to employment with that ALE Member. On December 28,the IRS issued Noticewhich extended the due dates for the information reporting requirements, for both filing information returns with the IRS and furnishing statements to individuals, for insurers, self-insured employers, and certain other providers of minimum essential coverage under sectionaffordable care act reporting requirements, and the information reporting requirements for ALE Members under section Specifically, Notice extended the due date for furnishing to individuals the Forms B and C, from January 31,until March 31,affordable care act reporting requirements, and extended the due date for filing with the IRS the Forms B, B, C, and C from February 29,to May 31, if not filing electronically, and from March 31, affordable care act reporting requirements,to June 30, if filing electronically.

These extensions applied automatically to all employers and other coverage providers affordable care act reporting requirements were longer than the day extensions that could otherwise be obtained. Therefore, the IRS did not process any previously requested extensions of these deadlines for reporting in Employers or other coverage providers that did not comply with the extended due dates in Notice may be subject to penalties under section or for failure to timely furnish and file.

Because the deadlines under sections and for furnishing Forms B and C to individuals and filing Forms C, C, B, and B with the IRS were extended as described in the above question, the August 1, deadline for reduction in penalty amounts to correct the failures described in sections b 2 and b 2 also was extended.

For statements furnished to individuals under sections andany failures that reporting entities corrected by April 30 and October 1,respectively under section b 1 and b 2were subject to reduced penalties. For returns filed on paper with the IRS under sections andany failures affordable care act reporting requirements reporting entities corrected by June 30 or November 1,affordable care act reporting requirements, respectively under sections b 1 and b 2were subject to reduced penalties.

For returns filed electronically with the IRS under sections andany failures that reporting entities corrected by July 30 or November 1, affordable care act reporting requirements,respectively under sections b 1 and b 2were subject to reduced penalties.

 

Affordable Care Act in What do Employers Need to Know?

 

affordable care act reporting requirements

 

Aug 20,  · Affordable Care Act Reporting Requirements: Penalties for Noncompliance. For employers and employees who do not comply with the ACA reporting requirements, substantial penalties can be imposed. An ALE member that fails to comply with the information reporting requirements may be subject to the general reporting penalty provisions under IRC. 1. What are the information reporting requirements for employers relating to offers of health coverage under employer-sponsored plans? The Affordable Care Act added sections H and to the Internal Revenue Code. Tax-Exempt Hospitals - Additional Requirements. The Affordable Care Act added new requirements for charitable hospitals (see Notice (PDF) and Notice (PDF)). On June 26, , the IRS published proposed regulations that provide information on the requirements for charitable hospitals relating to financial assistance and emergency.