Employers Face Complicated and
Burdensome Reporting Requirements
under Affordable Care Act
I
n September, the Internal Revenue Service (IRS) issued
long-awaited regulations and instructions detailing
employer’s reporting requirements under the Affordable Care Act (ACA). Under the ACA, IRS Section
6056 requires all applicable large employers (ALEs) to
report to the IRS information about their compliance with the
employer shared responsibility provisions of section 4980H of
the Code and about the health care coverage they have offered
to employees and their dependents. These requirements, like
the law itself, are extremely complicated and burdensome to
employers who are required to comply.
The reporting responsibilities consist of an employer transmittal report in addition to separate statements that will need
to be issued to employees.
The employer report will
be completed on IRS Form
1094-C and the employee
statements will be completed
on IRS Form 1095-C.
2014 Issue 4 |
the
SCORE
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by Christy Williams
Months after the rules were released, the
IRS provided draft forms for employers
to review July 24, 2014, with instructions
released on Sept. 3, 2014.
What is the purpose of the employer
reporting? Information contained on the
employer report and separate employee-related statements
will be used to administer and ensure compliance with the
eligibility requirements of the employer shared responsibility
provisions and the premium tax credit. In plain English, this
is the data the IRS will use to determine whether employers
should be assessed either the 4980H(a)/$2,000 penalty or
the 4980H(b)/$3,000 penalty and whether your employees
and their spouses and dependents qualify to receive
premium subsidies in a state
exchange or the Federal
Exchange/Marketplace.