By Danielle Capilla
Chief Com­pli­ance Offi­cer at Unit­ed Ben­e­fit Advisors

tradebillMost employ­ers are famil­iar with the penal­ties assessed to applic­a­ble large employ­ers that fail to offer min­i­mum essen­tial cov­er­age that is min­i­mum val­ue and afford­able. In addi­tion to being required to offer cov­er­age, employ­ers (all applic­a­ble large employ­ers, and all employ­ers with self-fund­ed plans regard­less of size) are required to com­plete IRS report­ing forms under sec­tions 6055 and 6056 of the Patient Pro­tec­tion and Afford­able Care Act (ACA). These forms are used to inform the IRS and employ­ees about the cov­er­age that was offered and enrolled in, allow­ing employ­ees to sat­is­fy the indi­vid­ual man­date and allow­ing employ­ers to con­firm they met the require­ment to offer coverage.

On June 29, 2015, Pres­i­dent Oba­ma signed the Trade Pref­er­ences Exten­sion Act of 2015. The bill includ­ed sig­nif­i­cant increas­es for fail­ure to file a num­ber of required tax report­ing forms, includ­ing the forms required under sec­tions 6055 and 6056.

For specifics on the penal­ty increas­es as well as infor­ma­tion on the Health Cov­er­age Tax Cred­it (HCTC) which was restored by the Trade Pref­er­ences Exten­sion Act of 2015, view UBA’s ACA Advi­sor: Trade Bill Increas­es ACA Report­ing penal­ties; Rein­states Tax Cred­it.

For more infor­ma­tion on forms for 6055/6056 report­ing, see our recent blog.

A more detailed overview of employ­er report­ing require­ments can be found in the UBA doc­u­ment “IRS Issues Final Forms and Instruc­tions for Employ­er and Insur­er Report­ing Forms.”

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