By: Peter E. Hansen, Esq.
Think that the Affordable Care Act does not affect you because you are not a “large employer”? If you sponsor a group health plan, think again. The ACA includes two significant reporting requirements with broad application, commonly called 6055 and 6056 reporting.
The first reporting requirement applies to providers of minimum essential coverage regardless of size, so even “small” employers fewer than fifty full-time employees are subject to this reporting requirement if they sponsor a group health plan. In short, employers must file two forms with the IRS – Forms 1094-B and 1095-B – and distribute a report to employees containing the same information. If the plan is fully-insured, then the insurance carrier is responsible for preparing the forms for the IRS; however, the employer may be responsible for distributing the report to its employees.
The second reporting requirement applies to all “applicable large employers,” so all employers with fifty or more full-time employees are subject to this reporting requirement regardless of whether they offered health coverage to all, none, or some of their full-time employees. Similar to the first requirement, employers must file two forms with the IRS – Forms 1094-C and 1095-C – and distribute a report to employees containing the same information.
Although the reports are not due until 2016, the information to be included in the report relates to the 2015 calendar year. As a result, employers must determine whether they are subject to the 6055 and/or 6056 reporting requirements as soon as possible and, if so, determine who will complete the reports and verify that they are tracking all information to be reported. Doing so will help avoid penalties, which could be up to $100 for each employee who does not receive a report. Questions? Suggestion for a future Obamacare FAQ of the Month? Please contact WS Attorney Peter E. Hansen at (262) 560-9696, or email firstname.lastname@example.org.