As the year comes to an end, you may have questions regarding what is required by employers for reporting on the Affordable Care Act.
The Compliance Department of ATPA recently sent NCGMA the following memo, which may provide insight:
The Internal Revenue Service (IRS) is implementing two different sets of detailed notice and reporting requirements that will help to enforce the employer requirements. One set of rules (IRC Section 6055) applies to health plans that provide minimum essential coverage, including self-insured multiemployer plans and insurance carriers. Health plans must report to the IRS on 1094-B/1095-B forms. The other set (IRC Section 6056) applies to “Applicable Large Employers” (i.e., those with at least 50 full-time employees, including full-time equivalents). Applicable Large Employers must report to the IRS on 1094-C/1095-C forms.
Plan Reporting: ATPA is in the process of implementing the ACA Reporting on behalf of our clients to assist them in their compliance efforts with 1094-B/1095-B forms. ATPA will prepare and report plan participant information on Form 1095-B and Form 1094-B for plan participants (and any covered dependents) who were enrolled in and receiving self-insured coverage under the Plan during 2015. If a plan is insured, the applicable insurer will prepare and report plan participation information. The Fund must furnish a copy of the Form 1095-B to participants no later than February 1, 2016, and file a form 1094-B and the Form 1095-B with the IRS by February 29, 2016, or March 31, 2016, if filing electronically.
Large Employer Reporting: The responsibility to complete, file and mail the 1094-C/1095-C Forms falls on “Applicable Large Employers” (with more than 50 full-time employees). Because of our relationship with the health trust funds, ATPA cannot and will not assist employers in completing these forms. Based on the most recent IRS instructions for completing 1095-C Form, employers contributing to a multiemployer plan will not need to include enrollment information from the health trust funds on this form. The revision to the instructions resolved the concern that providing enrollment information to employers, the health fund would be violating HIPAA Privacy rule. Under that rule, enrollment information is considered Protected Health Information “PHI” and can only be used, maintained and distributed in accordance with the HIPAA rules.
Further, the IRS interim “multiemployer” relief guidance, provides that contributing employers may be treated as offering minimum essential coverage to an employee if the employer is required by a collective bargaining agreement or related participation agreement to make contributions for that employee to a multiemployer plan that provides minimum value, is affordable and offers coverage to dependents to age 26. The multiemployer plan to which you contribute provides coverage for dependents to age 26 and provides minimum value. Whether the coverage is affordable, depends on how the employee’s share of premium or contribution relates to his or her income. It is up to the employer to determine whether the coverage is affordable.
Accordingly, if the above criteria are met, contributing employers may use the interim “multiemployer” relief guidance. Based on the most current IRS instructions as it relates to the interim “multiemployer” relief, contributing employers would complete 1095-C Form as follows:
1. Part I – enter the identification of the employee and employer
2. Part II – “Employee offer of coverage”
a. Line 14, use code 1H for any month for which the employer enters code 2E on line 16
b. Line 15 does not need to be completed
c. Line 16, use code 2E for each month in which the employer is required to make a contribution to a multiemployer plan on behalf of the employee.
3. Part III – “Covered Individuals”, this part does not need to be completed
For reporting for 2015, Code 1H on Line 14 may be entered without regard to whether the employee was eligible to enroll in coverage under the multiemployer plan. For 2016 and future years, reporting for offers of coverage made through a multiemployer plan may be reported in a different manner.
Please note that these forms and instructions are still in draft form and subject to change. In addition, the multiemployer arrangement is an interim guidance for 2015. Further guidance is expected from the IRS for future reporting. The above information is for informational purposes only. This should not be taken as legal or tax advice. We strongly recommend you consult with your tax professional and legal counsel for further guidance and clarification regarding your reporting responsibilities.
Want more info? Check out these helpful webinars from the Internal Revenue Service!
- IRC Section 6055 – Minimal Essential Coverage (including self-insured, multi-employer plans) reporting on the 1094-B/1095-B forms
(Click Here for the Accompanying PowerPoint Presentation) - IRC Section 6056 – For Large Employers (with at least 50 full-time employees) reporting on the 1094-C/1095-C forms
(Click Here for the Accompanying PowerPoint Presentation)