Posted by Fletcher Accounting and Tax Service Inc.

Health Care Law Reporting Requirements for Employers

Health Care Law Reporting Requirements for Employers

The new health care act (the Affordable Care Act) incorporates a few arrangements identifying with reporting by employers to workers. A portion of the requirements are for all employers, and some special conditions are for larger employers. The IRS regulates the procedures and reports under this law. 

The arrangements of the Affordable Care Act (ACA) are mind-boggling and point by point, and there is tax aftermath to these reports. Set aside the effort to survey your comprehension of requirements with your tax preparer or accountant before settling on any choices or sending your reports. 

Reporting Conditions for Employers 

The IRS expects all business owners to report the expense of health care coverage to representatives on Form W-2, the yearly compensation report dispersed to workers and the Social Security Administration every year. If you miss this on the first W-2, you are expected to file a revision form W-2C to incorporate this data. 

In particular, the ACA "expects employers to report the expense of coverage under an employer-supported group health plan." The necessity applies to "all employers that give "applicable employer-supported coverage." 

The W-2 report must be incorporated on every representative's W-2 form, utilizing Code DD - Cost of employer-sponsored health coverage. When reporting, including the estimation of any medicinal, dental and vision coverage you may pay. Incorporate both the employer and representative segments of the expense; as it were, the total expense of the arrangement, regardless of who pays for it. 

As indicated by the IRS, costs paid by employers for health insurance are not taxable to the workers, for either earning charges or FICA taxes (Social Security and Medicare). 

Reporting Requirements for Large Employers 

If your business or organization has at least 50 full-time proportionate workers, you are considered an "Applicable Large Employer" (ALE) to report and for the reasons for Employer Shared Responsibility. For this reason, full-time workers are the individuals who work, all things considered, something like 30 hours out of every week. 

If your business is an ALE, you should either: 

Offer "affordable" health care coverage to full-time workers. That coverage must give "minimum value," or 

Make an 'employer shared responsibility' payment (ESR) to the IRS. This installment must be made whether one full-time worker gets a premium tax credit for purchasing single coverage on an Exchange. 

Notwithstanding the reporting requirements depicted above though employers for including health couldn't care fewer costs you Form W-2, you should report regardless of whether you offered health care coverage to representatives. 

Here are the subtleties on what you should report and when: 

An announcement to representatives about health insurance coverage offered to workers. This announcement, on IRS Form 1095-C, must be (a) given to every representative on and (b) sent to the IRS. 

If your business self-insures s its plan, you should give an announcement to the IRS about this coverage. You should utilize Section III of the 1095-C form for this reason. 

Documenting 1095-C Forms Electronically 

If you are recording less than 250 of the 1095-C shapes, you don't need to document them electronically. Peradventure you are documenting more than 250 forms, you should file or record them electronically. The IRS has an excellent UI framework for the Affordable Care Act Information Returns that you can utilize. 

Reporting Deadlines 

Reports on Form 1095-C are expected for the past calendar year. For instance, the structure must be documented with the IRS by February 28, 2019, for 2018. 

Reporting to workers: You should give every worker a duplicate of Form 1095-C by January 31, for the previous calendar year

Reporting to the IRS: IRS Form 1095-C must be recorded with the IRS before February 28 (March 31 whenever documented electronically). 

Form 1095-C Details 

  • Form1095-C requires these accompanying data: 
  • Worker's name, address, and Tax Identification number 
  • Employer name address, contact data, and EIiN 
  • Worker offers of coverage, total year and month by month.
  • Worker required a contribution, total year and month by month.
  • For self-protected plans; covered workers, ID, and coverage months

The Instructions for Form 1095-C provide more details on the conditions for this form. You can find a tax preparer or accountant to guide you on reporting requirements for health care insurance coverage.

Fletcher Accounting and Tax Service Inc.
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