ACA Reporting of Healthcare Coverage

• Reporting Overview
• Reporting Deadlines

• Electronic Forms
• Required Forms

There have been a number of updates regarding the ACA's Section 6055 and 6056 reporting requirements. The major developments are outlined below:

Sept. 17, 2015: The IRS released final 2015 versions of Forms 1094-B, 1095-B, 1094-C and 1095-C, along with related instructions, that employers will use to report under Sections 6055 and 6056. The final instructions include extensions of time to file and a process to obtain an electronic reporting waiver, as well as important clarifications on the reporting of HRA coverage.

Aug. 18, 2015: The IRS finalized Publication 5165, Guide for Electronically Filing ACA Information Returns for Software Developers and Transmitters. Any employer that files at least 250 Section 6055 or 6056 returns must file electronically (or obtain a waiver). However, these employers can file the first 250 returns on paper, if they so choose.

Reporting entities that file fewer than 250 returns during a calendar year may still file via paper. Electronic filing will be done through the ACA Information Returns (AIR) program, which is slated to become available on Oct. 22, 2015.

June 29, 2015: The Trade Preferences Extension Act of 2015 was signed into law, which increased penalties for employers that fail to comply with Section 6055 and 6056 reporting. The adjusted penalty amounts for 2016 are outlined below:

• The general penalty amount increased from $100 to $250 for each return, up to an annual maximum of $3 million per calendar year (previously $1.5 million). The annual maximum for small employers (those with up to $5 million in annual gross receipts) rose from $500,000 to $1 million.
• Penalties for violations corrected within 30 days increased from $30 to $50, up to an annual maximum of $500,000 per calendar year (up from $250,000). The annual maximum for small employers increased from $75,000 to $175,000.
• Penalties for violations corrected by Aug. 1 increased from $60 to $100, up to an annual maximum of $1.5 million per calendar year (previously $500,000). The annual maximum for small employers increased from $200,000 to $500,000.
• Minimum penalties for violations due to intentional disregard rose from $250 to $500 for each return, with no annual maximum.

Temporary relief from penalties may be available if employers can show they made good faith efforts to comply with the reporting requirements. Employers should review their information returns and individual statements to promote reporting accuracy.

Section 6055

Section 6056

Applies to:

Providers of minimum essential coverage (MEC)

Requires reporting entities to:

• File information with the IRS Provide statements to covered individuals
• Provide statements to covered individuals

• File information with the IRS
• Provide statements to full-time employees

Purpose is to help:

• IRS administer the individual mandate and determine eligibility for subsidies Individuals show compliance with the individual mandate

IRS Returns

Individual Statements

• Annual Deadline: Feb. 28 (March 31, if filed electronically)
• For 2015: Feb. 29, 2016 (March 31, if filed electronically)

• Annual Deadline: Jan. 31
• For 2015: Feb. 1, 2016
• May be furnished electronically if requirements are met