ComplyRightComplyRightComplyRightComplyRight
  • RESOURCES
    • Knowledge Center
      • Tip Sheets
      • E-Guides
      • Videos
    • Webinars
      • Upcoming
      • On Demand
    •  
    • HR 101 Courses

      HR 101 Courses
      Learn More
  • TOPICS
    • I want to learn about:
      • Hiring an Employee
      • Creating Policies
      • Paying Employees
      • Discrimination & Harassment
    • Column 2
      • Employment Law
      • Labor Law Postings
      • Employee Leave
      • Employee Recordkeeping
    • Category 3
      • Independent Contractors
      • Tax Reporting
      • Improving Employee Performance
      • Firing an Employee
    • Would Your Workplace Practices Hold Up in an EEOC Investigation?

      EEOC Investigation
      Read More
  • SOLUTIONS
    • Employee Management
      • Hiring
      • Time and Attendance
      • Training and Safety
      • Recordkeeping
      • Employee Policies
    • Labor Law Posters
      • Poster Guard® Service
      • ComplyRight Posters
      • Electronic Posters
      • Employee Handouts
      • Partner Solutions
    • Tax Information Reporting
      • DIY Filing Solutions
      • Processing Services
      • Partner Solutions
    • Featured Solution

      Poster Guard Compliance Protection
      Learn More
  • ABOUT
    • Who is ComplyRight
      • Mission
      • Core Values
      • Leaders
      • Newsroom
      • Contact
    • Careers
      • Culture
      • Benefits and Perks
    • Brands
      • HRdirect
      • HRdirect Smart Apps
      • Poster Guard
      • eFile4Biz
    • Join Our Team

      Join Our Team
      Learn More
  • SUBSCRIBE

Understanding Employer Reporting Requirements of the Healthcare Law

Published on October 7, 2015
  • Tax Reporting
  • ACA

Under the Affordable Care Act, applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are required to take some new actions. These employers must file information returns with the IRS and also provide statements to full-time employees about health coverage the employer offered or to show the employer didn’t offer coverage.

Information reporting was voluntary for calendar year 2014. All applicable large employers are required to report health coverage information for the first time in early 2016 for calendar year 2015.

To be prepared to report this information to the IRS and issue the new Form 1095-C to employees, you’ll need to:

  • Determine if your organization is an applicable large employer.
  • Determine the kind of health insurance coverage you offered to full-time employees and their dependents, if any.
  • Identify who your full-time employees are for each month and track health coverage information in 2015to help complete new IRS forms.

Are You an Applicable Large Employer?

Your organization is an applicable large employer if you or other entities that must be combined together with your organization (for instance, other members of an aggregated group) employed an average of at least 50 full-time employees, including full-time equivalent employees, on business days during the preceding calendar year.

Which Employees Count?

Employers average their number of employees across the months in the year to see whether they will be an applicable large employer for the next year. To determine if your organization is an applicable large employer for a year, count your organization’s full-time employees, full-time equivalent employees and, if you are a member of a combined group, the full-time employees and full-time equivalent employees of all members of the group for each month of the prior year and then average the numbers for the year.

In general:

  • A full-time employee is an employee who is employed on average, per month, at least 30 hours of service per week (or at least 130 hours of service in a calendar month).
  • A full-time equivalent employee is a combination of employees, each of whom individually is not a full-time employee (has fewer than 30 hours of service per week), but who, in combination, are equivalent to a full-time employee.
  • An aggregated group is commonly owned or otherwise related or affiliated employers, which must combine their employees to determine their workforce size.

Getting Ready: Monthly Tracking

To prepare for 2016, applicable large employers need to track information each month in 2015, including:

  • Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable.
  • Whether your employees enrolled in the self-insured minimum essential coverage you offered.
  • You need to track this information because you could be subject to an employer shared responsibility payment if either:
  1. You offered coverage to fewer than 70%
  2. Note that this 70% threshold is for for 2015; after 2015 this threshold changes to 95%. You must have offered coverage to fewer than 70% of your full-time employees and their dependents and at least one full-time employee enrolled in coverage through the Health Insurance Marketplace and receives a premium tax credit, or

  3. You offered coverage to at least 70%

    You offered coverage to at least 70% (for 2015) of your full-time employees and their dependents, but at least one full-time employee receives a premium tax credit (because coverage offered was not affordable, did not provide minimum value or the full-time employee was not offered coverage). After 2015, this threshold changes to 95%.

Tips for Completing the Forms

  1. Form 1095-C: 
    Employer Provided Health Insurance Offer and Coverage
  2. What You Need to Do:

    • Provide to full-time employees to use when filing their tax returns.
    • File with the IRS as an information return.

    What Form 1095-C Reports:

    • Information about health insurance coverage offered and any safe harbors or other relief available to the employer, or reports that no offer of coverage was made.
    • Enrollment information from employers who offer self-insured plans and information about employees and individuals who enrolled in minimum essential coverage.

    How Form 1095-C Is Used:

    • Helps the IRS determine if your organization potentially owes an employer shared responsibility payment to the IRS.
    • Helps the IRS determine whether your full-time employees and their dependents are eligible for the premium tax credit.

    What You Need for Form 1095-C:

    • Who is a full-time employee for each month.
    • Identifying information for employer and employee, such as name and address.
    • Information about the health coverage offered by month, if any.
    • The employees share of the monthly premium for lowest-cost self-only minimum value coverage.
    • Months the employee was enrolled in your coverage.
    • Months the employer met an affordability safe harbor with respect to an employee and whether other relief applies for an employee for a month.
    • If the employer offers a self-insured plan, information about the covered individuals enrolled in the plan, by month.
  3. Form 1094-C:
    Transmittal of Employer Provided Health Insurance Offer and Coverage Information Returns
  4. What You Need to Do:

    • File with the IRS as a transmittal document for Forms1095-C, Employer Provided Health Insurance Offer and Coverage.

    What Form 1094-C Reports:

    • Provides a summary to the IRS of aggregate employer-level data.

    How Form-1094-C Is Used:

    • Helps the IRS determine whether an employer is subject to an employer shared responsibility payment and the proposed payment amount.

    What You Need for Form 1094-C

    • Identifying information for your organization.
    • Information about whether you offered coverage to 70% of your full-time employees and their dependents in 2015. (After 2015 this threshold changes to 95%.)
    • For the authoritative transmittal
    • Total number of Forms 1095-C you issued to employees.
    • Information about members of the aggregated applicable large employer group, if any.
    • Full-time employee counts by month.
    • Total employee counts by month.
    • Whether you are eligible for certain transition relief.

efile4Biz | Tax reporting, Independent Contractor

efile4Biz.com - The smart way to file & deliver

Related Content

  • play-button
    2020 Tax Refresher: Review the Latest Changes Affecting 1099, W-2 and ACA Reporting Forms
    December 2020

    With the many challenges the country – and likely your business – has been facing over the past several months, … Read more

    Tax Reporting

  • 1099s, W-2s and ACA Forms - Tax Seasonplay-button
    1099s, W-2s and ACA Forms: New Tax Season, New Priorities for Fast, Fully Compliant Filing
    November 2019

    Tax season is coming up fast, and soon you’ll be filing mandatory employee and contractor forms. Now is the time … Read more

    Tax Reporting

    ACA

    Worker Classification

  • How Multistate Employers Can Meet the Increasing Demands of Complex Payroll Tax and Employment Law Compliance
    How Multistate Employers Can Meet the Increasing Demands of Complex Payroll Tax and Employment Law Compliance
    September 5, 2019

    In today’s increasingly complex payroll tax and employment law environment, multistate employers must clear many hurdles to remain compliant. When … Read more

    Tax Reporting

    Minimum Wage

  • Taxpayer First Act: More Business Required to E-File Informational Returns
    Taxpayer First Act: More Businesses Required to E-File Informational Returns
    July 25, 2019

    On July 1, 2019, President Trump signed the Taxpayer First Act. This act proposes wide-sweeping changes in an effort to … Read more

    Tax Reporting

    ACA

  • ACA Here to Stay? IRS Targets Employers Who Failed to File ACA Forms
    ACA Here to Stay? IRS Targets Employers Who Failed to File ACA Forms
    January 18, 2019

    If you’re confused about the status of the Affordable Care Act (ACA), you’re not alone. While the ACA continues to … Read more

    Tax Reporting

    ACA

  • 2018 ACA Reporting Is Required and Strictly Enforced by IRS
    November 14, 2018

    As the year closes and the tax-filing season looms, employers may question the status of Affordable Care Act (ACA) reporting. Is … Read more

    Tax Reporting

    ACA

  • Attention, Employers: New Tax Bill Doesn’t Change Your 2017 ACA Reporting Requirements
    January 2, 2018

    Upon signing the tax overhaul bill in late December, President Trump declared that the ACA was “essentially” repealed, thanks to … Read more

    Tax Reporting

    ACA

  • Alert: IRS Announces 30-Day Extension of ACA Reporting Deadline
    December 27, 2017

    Businesses preparing for this year’s Affordable Care Act (ACA) reporting requirements just received an end-of-the-year gift from the IRS. On … Read more

    Tax Reporting

    ACA

Upcoming Webinar

Webinar Name

Date & Time

Presented by:

Learn More
Shop Our Brands 
HRdirect
HRdirect Smart Apps
Poster Guard
Formstax eFile4Biz

At ComplyRight, our mission is to free employers from the burden of tracking and complying with the complex web of federal, state and local employment laws, so they can stay focused on managing and growing their businesses.

©2020 ComplyRight, Inc.

Resources

  • Knowledge Center
  • Webinars
  • Research and Trends
  • Courses

Solutions

  • Employee Management
  • Labor Law Posters
  • Tax Information Reporting

About

  • Who is ComplyRight
  • Careers
  • Newsroom
  • Brands

Legal

  • Privacy Policy
  • Terms of Use

Popular Topics

Performance Policies Employee Leave Discrimination and Harassment Employment Law HiringLabor Law PostingsIndependent Contractors

Subscribe to Our Newsletter

Subscribe

Follow Us

  • RESOURCES
    • Knowledge Center
      • Tip Sheets
      • E-Guides
      • Podcasts
      • Infographics
      • Videos
    • Webinars
      • Upcoming
      • On Demand Webinars
    • Research and Trends
      • Compliance Survey
      • Trend Surveys
      • Minimum Wage Monitor
    • HR 101 Courses
  • TOPICS
    • Hiring an Employee
    • Creating Policies
    • Paying Employees
    • Discrimination & Harassment
    • Employment Law
    • Labor Law Postings
    • Employee Leave
    • Employee Recordkeeping
    • Independent Contractors
    • Tax Reporting
    • Improving Employee Performance
    • Firing an Employee
  • SOLUTIONS
    • Employee Management
      • Hiring
      • Time and Attendance
      • Training and Safety
      • Recordkeeping
      • Employee Policies
    • Labor Law Posters
      • ComplyRight Posters
      • Poster Guard®
      • Partner Solutions
    • Tax Information Reporting
      • DIY Filling Solutions
      • Processing Services
      • Partner Solutions
  • ABOUT
    • Who is ComplyRight
    • Newsroom
    • Careers
    • Brands
    • Contact Us
  • SUBSCRIBE
ComplyRight