The Affordable Care Act added significant new reporting requirements to the Internal Revenue Code (IRC). IRC section 6056 requires each Applicable Large Employer (ALE) subject to the Employer Mandate to report on their employer-sponsored coverage and to whom it is offered. This reporting is designed to assist the Internal Revenue Service (IRS) with enforcing the Employer Mandate and administering the premium tax credit.
There are two components to the reporting requirement:
All ALEs are responsible for reporting under section 6056. The regulations provide for a general reporting method, as well as simplified alternative reporting methods. Under the general reporting method, information provided to the IRS includes, but is not limited to, the following:
In general, the simplified alternative reporting methods limit the amount of information ALEs must report; however, in order to use one of these methods, the ALE must meet certain requirements.
IRS Extends Due Date for Furnishing IRS Form 1095-C to Employees The IRS issued Notice 2016-70 on November 18, 2016 extending the deadline for furnishing Form 1095-C to employees and extending good-faith transition relief to the 2016 reporting year.
Non-Calendar Year Plans IRC §4980H Transition Relief & IRC §6056 Reporting This Briefing provides examples of how the Employer Mandate transition relief for non-calendar year plans relates to the reporting under IRC section 6056.
Health Care Reform: IRC §6056 Information Reporting on Employer-Sponsored Coverage This Briefing outlines the reporting requirements under Internal Revenue Code section 6056, including the information to be reported and the simplified reporting methods that are available.
IRS: Summary of IRC Section 6056 Reporting Requirements
IRS: Questions and Answers on Reporting of Offers of Health Insurance Coverage by Employers (Section 6056)
IRS: Questions and Answers about Information Reporting by Employers on Form 1094-C and Form 1095-C