Tuesday, November 8, 2016

Section 6055 & 6056 Reporting

When it was enacted, the Affordable Care Act really shook things up with the IRS’s Internal Revenue Code. Namely, it added Sections 6055 and 6056 to the code to outline how employers must report the health insurance coverage they offer each year.

So just what do these new sections say? We’re glad you asked!

Section 6055 & 6056 Requirements
The Sections 6055 and 6056 go into a lot of detail about what it is you need to report to the IRS after you’ve offered health insurance to your full-time employees.
  • Section 6055 says that employers with self-funded plans and insurers who manage fully-insured plans must report information about the organization providing coverage.
  • Section 6056 says that employers must report information about the employer offering coverage.

Reporting Requirements
If you’re considered an Applicable Large Employer - that is, if you have at least 50 full-time employees - you’re subject to the Section 6055 and 6056 reporting requirements each year. That means the IRS requires you provide the following information on Forms 1094-C and 1095-C:
  • Detailed information on each employee (name, address, Social Security Number)
  • Your total number of full-time employees
  • Whether or not the coverage you offered met minimum essential coverage and minimum value
  • Whether or not the coverage you offered was affordable, as well as how much each employee was required to pay
  • Whether or not the coverage was offered to all of your full-time employees and their dependents.

Getting Started Reporting
If you’ve got everything squared away and are ready to report your MEC-meeting coverage, check out ExpressACAForms! We can create and e-file your ACA reporting forms safely and securely using the data you already have. Sign up for an account or contact our stellar customer support team to learn more!

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