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IRS Reporting and Other Requirements. Disclaimer. This training material is for informational purposes only and is not intended as tax or legal advice. Please talk with your attorney or tax professional for specific questions related to your Tribe or Tribal entity as an employer. This Training.
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Disclaimer This training material is for informational purposes only and is not intended as tax or legal advice. Please talk with your attorney or tax professional for specific questions related to your Tribe or Tribal entity as an employer.
This Training • Seven sections to this training: • Overview of Tribes and Tribal Entities as Employers under the ACA • Small Business Health Options Program (SHOP) • Small Business Tax Credit (Tax Credit) • Employer Shared Responsibility • Look Back Measurement Method • Transition Rules • IRS Reporting and Other Requirements
IRS Requirements and Other Reporting Topics • IRS Requirements • Section 6055 Reporting • Section 6056 Reporting • W-2 Form Reporting • Other • Fair Labor Standards Act, Section 18B Notice to Employees Requirement • Summary of Benefits and Coverage Requirement
IRS Section 6055 Reporting • Self-insured employers are required to comply. • Also, health insurers, sponsors of self-insured plans and governments that provide minimum essential coverage. • Tribes and Tribal entities must comply with this requirement. Due dates: • For 2015, return due on February 28, 2016 (March 31, 2016 If filed electronically). • For 2015, statement to individuals (employees) due on January 31, 2016. See 78 Fed. Reg. 54986 (not final yet).
IRS Section 6056 Reporting • Every large employer required to meet the requirements of section 4980H must comply. • Tribes and Tribal entities must comply with this requirement. Due dates: • For 2015, return due on February 28, 2016 (March 31, 2016 If filed electronically). • For 2015, statement to individuals (employees) due on January 31, 2016. See 78 Fed. Reg. 54996 (not final yet).
IRS Form W-2 Reporting • The ACA requires employers to report the cost of coverage under an employer-sponsored group health plan. • Employer must report cost of health care coverage on the Form W-2. • An employee is not taxed on the value of the employer’s excludable contribution to health coverage. • For informational purposes only– Provides employees with information on the cost of their health care coverage.
IRS Form W-2 Reporting: Employers Subject to Requirement • Employers that provide “applicable employer-sponsored coverage” under a group health plan are subject to the reporting requirement. • This includes: • Businesses • Tax-exempt organizations • Federal, state and local government entities • Except that Federally recognized Indian tribal governments are not subject to this requirement.
IRS Form W-2 Reporting: What to Report • The employer must report the value of the health care coverage on Form W-2, Box 12 with Code DD to identify the amount. • The amount reported in Box 12 should include both the employer’s and employee’s contributions. • IRS Chart illustrating the types of coverage that employers must report are available at:www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage
Section 18B Notice to Employees • Fair Labor Standards Act Section 18B Notice to Employees. • Employer “Notice of Exchange” to employees to inform employee of coverage options • Date due: • New employees at time of hiring beginning 10/1/2013. • Current employees no later than 10/1/2013. • Guidance and model language available at: www.dol.gov/ebsa/healthreform/
Summary of Benefits and CoverageRequirement • Effective September 23, 2012, Section 2715 of the Public Services Act requires entities offering group health plans subject to the Employee Retirement Income Security Act of 1975 (ERISA) to provide a Summary of Benefits and Coverage (SBC) to health plan participants, beneficiaries, prospective enrollees, and special enrollees.
Summary of Benefits and CoverageRequirement (continued) • Applies to both insured and self-insured group health plans, including grandfathered plans (exempt from other ACA requirements). • The SBC must be distributed with initial enrollment materials for a covered plan, and reissued each year thereafter; or if automatic re-enrollment occurs, at least 30 days prior to the first day of of coverage in the new plan. Penalty: $1,000 per day for each affected individual for willful failure to comply.
Recommendations • Monitor regulations and additional guidance. • Per recent regulations on 6055 and 6056 reporting (citations provided), the reporting process may be simplified. • Caveat: There may be other reporting requirements so keep apprised of any and all ACA employer requirements.
Section Review • Who is required to file a 6055 return? • Who is required to file a 6056 return? • Who is required to comply with W-2 Form Reporting? • Name one non-IRS requirement?
