Aca compliance software suite, hr compliance businessolver. The reporting stipulation states that an information return will be prepared for each applicable employee, and these returns must be filed with the irs using a single transmittal form form. Entities that file 250 or more returns are required to file electronically. Irs regulations provide that, beginning with 2015 tax year reporting in 2016, every provider of minimum. In general, providers of mec report on form 1095b, which is accompanied by a single. The affordable care act aca identifies employers who are subject to its provisions using the term applicable large employers ales. To streamline and prevent duplication under each reporting requirement, ale members with selfinsured coverage will combine section 6055 and section 6056 reporting.
An ale member using the general method with employees participating in a selfinsured plan also uses form 1095c to satisfy the reporting requirements under section 6055 for providers of minimum essential coverage, by filling out a separate section part iii of the form 1095c. Applicable large employers who must comply with 6056 reporting requirements do not need to file separate forms with the irs to comply with both the 6055 and 6056 filing requirements if they. Sections 6055 and 6056 were added to the internal revenue code by the aca as a means to enforce and administer certain new aca. Vander wal the materials and information have been prepared for informational purposes only. Information reporting of minimum essential coverage.
The reporting requirements are in sections 6055 and 6056 of the aca. The irs will not impose penalties on reporting entities that can show that they. Applies separately to code sections 6055 and 6056 reporting. It is recommended that employers and others seek legal andor accounting expertise to assess your organizations reporting. An ale member with selfinsured coverage will report on form 1095c, completing separate sections to report the information required under sections 6055 and 6056. Most ales subject to the aca will have completed three annual cycles of 6055.
Under the patient protection and affordable care act aca, individuals are required to have health. A crash course in 6055 and 6056 reporting on your benefits. Aca reporting software 1095 reporting services aca filing. Irs releases 2016 forms and instructions for 60556056 reporting background under the patient protection and affordable care act aca, individuals are required to have health. Questions and answers on reporting of offers of health. Under the patient protection and affordable care act aca, individuals are required to have health insurance, while applicable large employers. Form 6055 will require dependent information and 6056 will need dependent election details, which is not normally captured in an hr database. Employer reporting of health coverage code sections 6055. Update for employers on the new aca section 6055 and. The 6055 reporting, also known as minimum essential coverage mec reporting, is used to enforce the individual mandate and applies to all entities that provide mec. Sections 6055 and 6056 of the irs code describe the related reporting requirements. In the case of 6055 and 6056, if you have a nonexistent variable hour population, then aca reporting can be a singular event where the data is simply compiled at year end using. Information reporting under section 6055 is required for health coverage. Zywave releases a new aca section 6055 and 6056 reporting.
Section 6055 reporting section 6056 reporting what penalties apply for failure to provide to irs or individuals. See our section 6056 questions and answers and forms 1094c and. Understanding irs 6055 and 6056 reporting under the aca. In a partial year situation, the forms 1095b contain boxes we will populate. Responding to widespread requests, the final rules provide for a single, consolidated form that employers will use to report to the irs and employees under both sections 6055 and 6056. Irs delay in 6055 and 6056 reporting for 2017 bim group. Efile your 2020 aca 1094bc and 1095bc forms with our reporting software. Guide for electronically filing aca information returns for software. Under both sections 6055 and 6056, each reporting entity must file all of. The continued challenges imposed by the aca come in two primary forms. The core offering is storage of data required for 60556056 reporting. Milwaukee, wi, dec 17, 2015 marketwired via comtex zywave, inc. The 6056 reporting, also known as applicable large employer ale reporting, is used to enforce the employer mandate and applies to all ales with 50 or more full time or full time equivalent employees ftes.
More information on the air program is available on the irs website. Questions and answers on information reporting by health coverage providers section. Part iii was designed to allow ale members that sponsor selfinsured group health plans to combine reporting to satisfy both the section 6055 reporting requirements and the section 6056 reporting requirements, as. Guidelines finalized for electronic reporting under. The affordable care act aca created reporting requirements under the internal revenue code. Chip coverage, the state agency that administers the program must report. Reporting was first due in 2016, based on coverage in 2015.
An applicable large employer member that provides insured coverage also will report on form 1095c, but will complete only the section of form start printed page 225 1095c that. Department of the treasury and the internal revenue service irs released final rules to implement the information reporting provisions for insurers and certain employers under the aca that take effect in 2015. Businessolver has developed several flexible options to support a variety of reporting needs. It also includes a list of additional resources for more information. The simplest definition of an ale is an employer who employed an average of at least 50 fulltime employees on business days during the previous calendar year. Most ales subject to the aca will have completed three. The information will be reported on the 1095b1094b or the 1095c1094c form sets. Decisions must be made on how employers will manage section 605556 reporting. Basic white paper hr solutions come full circle for more information about any of our services or to speak with a sales. Employers that have 50 or more fulltime employees as defined by irs. Account ability is a network ready software application that fulfills the needs of small to midsize businesses with a simple, yet powerful, solution to the complicated job of annual 1095, 1098, 1099, 3921, 3922. Generating your 60556056 reporting forms zywave support. Sections 6055 and 6056 were added to the internal revenue code by the aca as a means to.
Irs releases 2015 forms and instructions for 60556056 reporting. In a nutshell, these sections call for some employers to report to the. Section 6055 and 6056 health coverage reporting the session will begin shortly sound should come through your speakers when the session begins verify that the volume is turned. Summary of section 6055 and 6056 reporting required under. Irs releases 2015 forms and instructions for 60556056. Irs releases 2016 forms and instructions for 6055, 6056. Aca requirements can change, so visit us often for. Quick facts2015 testing for sections 6055 and 6056 electronic reporting is now available. As per aca reporting requirements, under irs code sections 6055 and 6056, employers are required to report the irs defined codes and related data in order. Aca section 6055 and 6056 reporting requirements mary v. Faqs for employer reporting 6055 and 6056 onedigital. Reporting requirements all employers who are considered applicable large employers those with more than 50 fulltime employees have to file the information required. These are new reporting rules set out in internal revenue code sections 6055 and 6056.
Auditing and legal strategies specific to irs penalty notices. Under code section 6056, entities will file forms 1094c a transmittal and 1095c an information return for each fulltime employee for any month. Questions and answers on information reporting by health. Questions and answers on reporting of offers of health insurance. Here are the basics on 6055 and 6056 reporting for applicable large employers under aca guidelines. The administrative side of 6055 and 6056 reporting will be challenging for employers. It is recommended that employers and others seek legal andor accounting expertise to assess your organizations reporting requirements. The air program is scheduled to become available on oct. Under code section 6055, reporting entities will generally file forms 1094b a transmittal and 1095b an information return. A crash course in 6055 and 6056 reporting on your benefits hni. Note that conference offices and other salarypaying units that also are applicable large employers 50 or more fulltime equivalent employees ftees. Section 6056 was added to the irs tax code with the passing of the affordable care act also known as obamacare and explains what businesses need to do to notify their employees and.
Under both sections 6055 and 6056, each reporting entity must file all. Under code section 6056, entities will file forms 1094c a. In a nutshell, these sections call for some employers to report to the irs information about employersponsored health coverage. Employers decide how to manage section 605556 reporting.