IRS Releases Draft Forms for Reporting of Employee Coverage

The Internal Revenue Service (IRS) has released draft reporting forms that employers will use to report the health coverage they offer their employees. These forms will be used to enforce the individual mandate and employer shared-responsibility provision under the Affordable Care Act (ACA).

Under the ACA, applicable large employers are required to either offer employees health insurance coverage or pay a fee if at least one employee purchases subsidized coverage through the Marketplace. Beginning in 2015, large employers with at least 100 full-time equivalent employees must report coverage and pay any applicable fees. The same applies to mid-sized employers with 50-99 full-time equivalent employees beginning in 2016. Employers with fewer than 50 full-time equivalent employees are exempt from the requirement. The first information returns must be filed in 2016 for coverage provided on or after January 1, 2015.

Copies of the following draft forms are available at www.irs.gov/draftforms:

Form 1095-B – Information Reporting of Minimum Essential Coverage
Form 1095-C – Employer-Provided Health Insurance Offer and Coverage
Form 1094-B – Transmittal of Health Coverage Information Returns
Form 1094-C – Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns

The IRS announced that draft instructions for the Forms will be posted on irs.gov in August and that final versions of both the forms and the instructions will be released later this year.

If you have questions about the reporting requirement, call ASR Health Benefits at (616) 957-1751 or (800) 968-2449.