May an employer hire a third-party administrator to handle Section 6056 reporting requirements?

Author: Gloria Ju

Yes. An employer may use a third-party administrator or other third-party service to file Section 6056 information returns with the Internal Revenue Service and to provide statements to full-time employees. However, the employer remains liable for failing to fulfill Section 6056 reporting requirements and for potential penalties under the Affordable Care Act's employer shared responsibility (or pay or play) mandate.

If more than one party is facilitating reporting for an employer, there must be only one Form 1094-C for all of the employer's full-time employees and only one Form 1095-C for each full-time employee with respect to employment with that employer.