Get Ready for ACA Reporting Requirements

affordable-care-actStarting in 2015, the Affordable Care Act requires that employers report information about the health care coverage they offer to employees. While the first filings are not due until March 1st of 2016 (March 31st if filed electronically, it’s never too early to begin working to ensure compliance.

  • Internal Revenue Code Section 6055 applies to employers with self-funded or self-insured plans and to the insurer offering an insured plan. Employers and insurers must provide a list of covered individuals with identifying information and the months coverage was provided.
  • Internal Revenue Code Section 6056 applies to “applicable large employers” (those with over 50 full-time equivalents) (FTEs) and requires a listing of all full-time employees and coverage offered to each, by month – including the cost of single (employee only) coverage.

Employers with self-funded plans must file both forms, while those with fully-insured plans will only file the 6056 report. General reporting requirements demand that employers provide: detailed information for each calendar month on the total number of FTEs; the name, address and Social Security number for each; whether coverage offered was “minimum essential coverage;” whether it satisfied the “minimum value” requirement; whether it was affordable and how much the employee was required to pay; and whether the coverage was offered to FTEs and their dependents. In addition to these IRS reports, employers are required to deliver annual statements to their FTEs.

If your plan is administered by a Third Party Administrator, it’s likely that most of this information is already being collected and will be readily available to meet these requirements.

To view other articles from the SIP Summer Newsletter, please click here.

In cooperation with NAEBA

Follow @sip_tpa

Follow @the_NAEBA

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s