By Danielle Capilla
Chief Com­pli­ance Offi­cer at Unit­ed Ben­e­fit Advisors

ChangesAheadUnder the Patient Pro­tec­tion and Afford­able Care Act (ACA), indi­vid­u­als are required to have health insur­ance, while applic­a­ble large employ­ers (ALEs) are required to offer health ben­e­fits to their full-time employ­ees. In order for the Inter­nal Rev­enue Ser­vice (IRS) to ver­i­fy that (1) indi­vid­u­als have the required min­i­mum essen­tial cov­er­age, (2) indi­vid­u­als who request pre­mi­um tax cred­its are enti­tled to them, and (3) ALEs are meet­ing their shared respon­si­bil­i­ty (play or pay) oblig­a­tions, employ­ers with 50 or more full-time or full-time equiv­a­lent employ­ees and insur­ers will be required to report on the health cov­er­age they offer. Final instruc­tions for both the 1094‑B and 1095‑B and the 1094‑C and 1095‑C were released in Sep­tem­ber 2015, as were the final forms for 1094‑B, 1095‑B, 1094‑C, and 1095‑C.

Report­ing will first be due in 2016, based on cov­er­age in 2015. All report­ing will be for the cal­en­dar year, even for non-cal­en­dar year plans. On Decem­ber 28, 2015, the IRS issued Notice 2016–4, delay­ing the report­ing deadlines.

The report­ing require­ments are in Sec­tions 6055 and 6056 of the ACA. The 1094‑C, 1095‑C, 1094‑B, and 1095‑B were orig­i­nal­ly due to the IRS by Feb­ru­ary 28 if fil­ing on paper (Feb­ru­ary 29, in 2016, because Feb­ru­ary 28 falls on the week­end), or March 31 if fil­ing elec­tron­i­cal­ly. The 1095‑C form was due to employ­ees by Jan­u­ary 31 of the year fol­low­ing the year to which the Form 1095‑C relates (Feb­ru­ary 1, in 2016, because Jan­u­ary 31 falls on a week­end). The 1095‑B was due to the indi­vid­ual iden­ti­fied as the “respon­si­ble indi­vid­ual” on the form by Jan­u­ary 31 (Feb­ru­ary 1, in 2016, because Jan­u­ary 31 falls on a weekend).

The tran­si­tion relief pro­vid­ed by Notice 2016–4 extend­ed the due date for fur­nish­ing Form 1095‑B and 1095‑C to indi­vid­u­als to March 31, 2016. The due date for fil­ing all forms (1094‑C, 1095‑C, 1094‑B, and 1095‑B) to the IRS is moved from Feb­ru­ary 29, 2016, to May 31, 2016, if fil­ing by paper. If fil­ing elec­tron­i­cal­ly, the date is moved to June 30, 2016.

Employ­ers that have dif­fi­cul­ty meet­ing the extend­ed report­ing dead­lines are encour­aged to file late, as the IRS will take late fil­ing into con­sid­er­a­tion when deter­min­ing whether to reduce penal­ties for rea­son­able caus­es. The IRS will also take into account if an employ­er made rea­son­able efforts to pre­pare for report­ing, such as gath­er­ing or trans­mit­ting nec­es­sary infor­ma­tion to a report­ing service.

For addi­tion­al infor­ma­tion on how the exten­sion may impact your employ­ees, as well as the exten­sion process, down­load the UBA ACA Advi­sor, “IRS Pro­vides Major Delay in 6055 and 6056 Report­ing”.

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