The Affordable Care Act (ACA) created new reporting requirements under Internal Revenue Code (Code) sections 6055 and 6056. Under these new reporting rules, certain employers must provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees.
On March 5, 2014, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released two final rules to implement the information reporting provisions. The final rules provide for reporting health insurance coverage by large employers and reporting minimum essential coverage by insurers and employers with self- funded plans.
Although the final regulations provide limited options intended to streamline information reporting by large employers, the final regulations largely maintain the reporting requirement outlined in proposed rules issued in September.
While the final reporting will not be required until early 2016 for the 2015 calendar year, employers are encouraged by the IRS to voluntarily report coverage information in 2015 for the 2014 calendar year. According to the IRS, real-world testing of reporting systems and plan designs, built in accordance with the final regulations, through voluntary compliance in 2014 will contribute to a smoother transition to full implementation for 2015.
Our legislative alert details the final rules and what employers need to do.
