Are there alternative methods of reporting available to employers under Section 6056?
Author: Gloria Ju
Yes. There are two simplified reporting methods an employer may use as an alternative to the general reporting method that do not require as much detailed information in certain situations:
- Reporting based on certification of qualifying offers. To be eligible to use this method, an employer must certify on its transmittal form, Form 1094-C, that for all months during the year in which an employee was a full-time employee, the employer:
- Offered minimum essential coverage (MEC) providing minimum value at an employee cost for employee-only coverage not exceeding a certain percent of the mainland single federal poverty line to one or more of its full-time employees; and
- Offered MEC to the employee's spouse and dependents (a qualifying offer); and
- Option to report without separate identification of full-time employees if certain conditions related to offers of coverage are satisfied (98 percent offers). This option allows an employer to report without identifying or specifying the number of full-time employees. To be eligible to use this method, the employer must certify on its transmittal form, Form 1094-C, that it offered coverage to at least 98 percent of the employees on whom it reports in its Section 6056 return.