Affordable Care Act Forms Can Be Time Consuming: Are You Ready?

Kegler Brown E-mployment Alert

Employers should consider whether they are on track to comply with Sections 6055 and 6056 reporting requirements under the Affordable Care Act. Although IRS Forms 1094 and 1095 are not due until February 29, 2016 (March 31 if filed electronically), preparation of the forms may be tedious and time consuming because of the scope and volume of information that needs to be reported.

Section 6055 requires every provider of minimum essential coverage to report coverage information by filing a return with the IRS and providing a statement to covered individuals. If the health plan is an insured plan, then the insurer will be responsible for reporting. If, however, it is a self-funded plan with the employer as sponsor, then the employer will have to report.

Section 6056 requires applicable large employers (“ALE”), i.e., employers with 50 or more FTEs, to file information returns with the IRS and provide statements to full time employees. The ALE will file Form 1094-C with the IRS and provide a Form 1095-C to each full time employee. The 1095-C forms also will be filed with the IRS along with the 1094-C. If the ALE is filing 250 or more 1095-C forms, then employer will be required to file electronically. Medium sized ALEs, i.e., those with 50 to 99 FTEs who are eligible for transition relief for 2015, still have to file under Section 6056 to certify the basis for their claim to transition relief.