IRS Finalizes ACA Reporting Rules for 2015

IRS Finalizes ACA Reporting Rules for 2015

The IRS has published a long Q&A dialogue concerning the ACA reporting rules that apply to employers that meet the federal mandate. This information that can be found on the IRS website  was released at the end of November.  Although, it was released before the 2014 tax year the information required under section 6056 is completely voluntary until in 2015 filing year.  At the above link you will find a concise summary of topics such as basic employer reporting, who is required to report, methods of reporting, what information Applicable Large Employers (ALE) members must report, as well as how and when to report required information.

A major change ushered in by section 6056 is that ALE members will be required to file a new forms, Form 1094-C and 1095-C.  Form 1094-C is at the employer level and involves aggregate health coverage information reporting.  Form 1095-C (employee statement) is distributed to each individual employee of an ALE.

Additional details:

  • ALE employers who have more than 250 or more employee statements must e-file
  • ALE employers must report each full-time employee regardless if ANY coverage was offered
  • The first section 6056 returns required to be filed are for the 2015 calendar year and must be filed no later than February 29, 2016, or March 31, 2016.

IRS announced that ALE employers ARE allowed to hire a third party administrative service provider or other third party service provider to file the return with the IRS and furnish the statements to employees required under section 6056.  Tab Service Company is actively pursuing adding these forms to its menu of services for IRS reporting and compliance.  The ACA has brought about many changes, and we must adapt to remain compliant with tax regulations.  We plan to continue a low cost, full-outsourcing plan to employers to reduce administrative burden for ACA related compliance.

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