ACA Reporting Requirements Take Effect in 2016

Oct 19 2015 - Benefits, Health Care Reform - Gail Cecchettini Whaley

Beginning in 2016, employers subject to the Affordable Care Act’s (ACA’s) employer mandate must comply with reporting requirements concerning the health insurance coverage they offer to employees

The ACA amended the Internal Revenue Code to require that “applicable large employers” (employers with 50 or more full-time and full-time equivalent employees) file information returns with the IRS detailing the coverage that they did or did not offer to full-time employees in the preceding year. These employers also must provide statements to employees about the coverage they were or were not offered.

The IRS will use the information to administer the ACA’s employer mandate, and to determine if employees are eligible for premium tax credits.

Applicable large employers must file their information returns with the IRS on or before February 29, 2016, or by March 31, 2016, if they file the information returns electronically (employers filing more than 250 returns must do so electronically). Applicable large employers must provide the required statements to their employees by February 1, 2016.

Employers can find resources on the reporting process on the IRS’s ACA Information Center for Applicable Large Employers site.

Erika Pickles, CalChamber Employment Law Counsel

CalChamber members can read up on the ACA on the HR Library’s Federal Health Care Reform page.

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