Health Care Law: Information Reporting for Employers

Health Care Law: Information Reporting for Employers


HI, I’M MICHELLE AND I WORK FOR THE INTERNAL
REVENUE SERVICE.     THE AFFORDABLE CARE ACT INCLUDES REPORTING
REQUIREMENTS FOR EMPLOYERS RELATED TO HEALTH CARE COVERAGE.
     AS AN EMPLOYER THERE ARE A FEW THINGS YOU NEED TO KNOW TO MAKE SURE YOUR ORGANIZATION
IS READY FOR THESE ANNUAL REQUIREMENTS.      BEFORE YOU DO ANYTHING ELSE YOU
NEED TO KNOW IF YOU’RE AN APPLICABLE LARGE EMPLOYER ALSO KNOWN AS AN ALE.
     YOU’RE AN ALE IF YOU AVERAGED 50 OR MORE FULL-TIME EMPLOYEES INCLUDING FULL-TIME
EQUIVALENTS IN THE PREVIOUS CALENDAR YEAR.      A FULL-TIME EMPLOYEE FOR ANY CALENDAR
MONTH IS AN EMPLOYEE WHO HAS ON AVERAGE AT LEAST 30 HOURS OF SERVICE PER WEEK DURING
THE CALENDAR MONTH OR 130 HOURS OF SERVICE PER MONTH.
     IF YOU HAVE FEWER THAN 50 EMPLOYEES BUT YOU’RE PART OF A GROUP OF RELATED EMPLOYERS
SOMETIMES CALLED AN AGGREGATED GROUP YOU COULD ALSO BE CONSIDERED AN ALE. 
     THAT’S BECAUSE THE ALE STATUS FOR THE COMBINED GROUP APPLIES TO EACH OF
THE EMPLOYERS THAT FORM THAT GROUP.      NOW IF YOU’RE NOT AN ALE YOU AREN’T
SUBJECT TO THESE REPORTING REQUIREMENTS UNLESS YOU PROVIDE SELF-INSURED HEALTH COVERAGE TO
YOUR EMPLOYEES.      IF THIS IS YOUR SITUATION GO TO IRS.GOV/ACA
AND CLICK “EMPLOYERS” FOR MORE DETAILS.      IF YOU ARE AN ALE, YOU’RE REQUIRED
TO REPORT INFORMATION TO THE IRS AND TO INDIVIDUALS ABOUT HEALTH COVERAGE YOU OFFERED.
       TO DO THIS YOU’LL NEED TO TRACK SOME INFORMATION THROUGHOUT THE YEAR. 
      EACH MONTH YOU NEED TO TRACK WHAT KIND OF HEALTH COVERAGE WAS OFFERED TO EACH
FULL-TIME EMPLOYEE THEIR SPOUSE AND DEPENDENTS.      YOU ALSO NEED TO TRACK THE AMOUNT
OF THE REQUIRED EMPLOYEE CONTRIBUTION FOR THE LOWEST-COST SELF-ONLY COVERAGE OPTION
OFFERED TO EACH FULL-TIME EMPLOYEE.           YOU’LL NEED THIS INFORMATION THE
FOLLOWING CALENDAR YEAR TO PREPARE FORMS 1095-C WHICH YOU WILL FILE WITH THE IRS AND SEND
TO YOUR EMPLOYEES.       FORM 1095-C WILL SHOW INFORMATION
ABOUT YOUR EMPLOYEES AND THE HEALTH COVERAGE YOU DID OR DID NOT OFFER.
          BE SURE TO CHECK EACH YEAR FOR THE REPORTING DEADLINES.
       WEEKENDS AND OTHER FACTORS CAN AFFECT THESE DATES.
     AND THE DEADLINES DIFFER DEPENDING ON WHETHER YOU FILE THE FORMS ELECTRONICALLY
OR ON PAPER.      THERE ARE A FEW OTHER THINGS YOU
NEED TO KNOW ABOUT THE PROCESS FOR FILING INFORMATION RETURNS.
     ONE JUST LIKE OTHER YEAR-END FORMS YOU ALREADY FILE WITH THE IRS THE MOST COMMON
BEING FORM W-2  YOU’LL FILE FORMS 1095-C WITH A TRANSMITTAL FORM.
     THAT’S FORM 1094-C.     AND TWO IF YOU’RE FILING 250 OR
MORE INFORMATION RETURNS TO THE IRS YOU’RE REQUIRED TO FILE THEM ELECTRONICALLY USING
THE AFFORDABLE CARE ACT INFORMATION RETURNS PROGRAM OR AIR FOR SHORT.
       LAST WHEN YOU FILE RETURNS USING AIR YOU WILL USE A DIFFERENT PROCESS THAN
YOU MIGHT USE FOR OTHER YEAR-END RETURNS.            SO BE SURE TO VISIT THE ACA INFORMATION
RETURNS OR AIR PAGE ON IRS.GOV FOR DETAILS.          NOW IF YOU ARE AN ALE YOU ALSO MAY
BE SUBJECT TO AN EMPLOYER SHARED RESPONSIBILITY PAYMENT.
     THIS PAYMENT APPLIES IF AT LEAST ONE FULL-TIME EMPLOYEE RECEIVES THE PREMIUM
TAX CREDIT AND ONE OF THE FOLLOWING SITUATIONS APPLIES TO YOUR ORGANIZATION.
     YOU DIDN’T OFFER COVERAGE TO YOUR FULL-TIME EMPLOYEES AND THEIR DEPENDENTS.
     OR YOU OFFERED COVERAGE THAT WASN’T AFFORDABLE.
      OR THE COVERAGE DIDN’T PROVIDE MINIMUM VALUE TO YOUR FULL-TIME EMPLOYEES
AND THEIR DEPENDENTS.      TO LEARN MORE ABOUT ANY OF THESE
TOPICS VISIT IRS.GOV/ACA.

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