Prepare for ACA Reporting Requirements
Key Points
- The Affordable Care Act (ACA) added Sections 6055 and 6056 to the Internal Revenue Code, which create two annual information-reporting requirements. Reporting requirements are based on an employer's size and the type of plan it offers.
- Section 6055, also known as minimum essential coverage (MEC) reporting, requires providers of MEC to report information to the IRS on each individual to whom MEC was provided and to furnish a written statement to covered individuals.
- Section 6056, also known as applicable large employer (ALE) reporting, requires an ALE to file information returns with the IRS and to provide a written statement to its full-time employees about the coverage the employer offered.
- The purpose of the reporting requirements is to promote transparency regarding health plan coverage and costs, provide the IRS with the information required to enforce the employer and the individual mandates and determine eligibility for premium tax credits for individuals purchasing coverage through the health insurance marketplace.
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FAQs related to Section 6055 and Section 6056
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What are the two annual information-reporting requirements under the Affordable Care Act (ACA)?
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When do the information-reporting requirements under Sections 6055 and 6056 go into effect?
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May an employer combine reporting for Sections 6055 and 6056?
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Is an employer required to file Section 6055 or Section 6056 information returns electronically?
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What steps should an employer take to electronically file Section 6055 or Section 6056 information returns?
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In what format must Sections 6055 and 6056 information returns be filed electronically?
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What penalties apply if an employer fails to timely file required information under Sections 6055 and 6056?
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How is an offer of COBRA continuation coverage reported under Sections 6055 and 6056?
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What should a reporting entity do if, after making a reasonable effort, it is unable to obtain the Social Security Number (SSN) of an employee's dependent who is covered under a health policy or plan?
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Must a reporting entity make a written request to obtain the Social Security Number (SSN) of an employee's dependent?
FAQs related to Section 6055
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Why does the Internal Revenue Service (IRS) require reporting under Section 6055?
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Who is required to file the annual information return reporting minimum essential coverage (MEC) under Internal Revenue Code (IRC) Section 6055?
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What forms should be used to file the annual return reporting minimum essential coverage?
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What information is required to be included on the information return reporting minimum essential coverage (MEC) under Internal Revenue Code (IRC) Section 6055?
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What information does the entity filing the annual return reporting minimum essential coverage have to provide to employees?
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What is the deadline for filing the annual return reporting minimum essential coverage (MEC)?
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If an employer maintains an insured health plan, who is responsible for filing the annual information return reporting minimum essential coverage?
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By when does the entity filing the annual return reporting minimum essential coverage have to provide a written statement to employees?
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If an employer is not subject to the employer mandate (i.e., an employer with fewer than 50 full-time and full-time equivalent employees), is it still required to report minimum essential coverage under Section 6055?
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Are all employers required to comply with the minimum essential coverage (MEC) reporting requirements under Section 6055?
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What steps should a reporting entity take if it does not have an employee's dependent's Social Security Number (SSN) for Section 6055 reporting purposes?
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Does an employer have to report minimum essential coverage (MEC) under Section 6055 for all employees or only for full-time employees?
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Must an employer report under Section 6055 if some or all of its covered employees are exempt from the individual mandate?
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To whom must an employer provide the statement required to be provided to individuals under Section 6055?
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Does an employer have to provide individual Section 6055 statements to each dependent covered under a health plan?
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How must an employer provide the Section 6055 statement to the responsible individual?
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How should an employer go about obtaining an individual's consent to send Section 6055 statements electronically?
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May an employer hire a third party to handle Section 6055 reporting requirements?
FAQs related to Section 6056
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Who is required to file the annual information return reporting the terms and conditions of health care coverage provided to full-time employees under Internal Revenue Code Section 6056?
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What forms should be used to file the annual return reporting the terms and conditions of health care coverage provided to full-time employees under Internal Revenue Code Section 6056?
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What information must be included on the information return reporting the terms and conditions of health care coverage provided to full-time employees under Internal Revenue Code Section 6056?
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What information must be provided to employees in relation to the annual return reporting the terms and conditions of health care coverage provided to full-time employees under Internal Revenue Code Section 6056?
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What is the deadline for filing the annual return reporting the terms and conditions of health care coverage provided to full-time employees under Internal Revenue Code (IRC) Section 6056?
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By when does the entity filing the annual return reporting the terms and conditions of health care coverage provided to full-time employees under Internal Revenue Code Section 6056 have to provide a written statement to employees?
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Do the reporting requirements under Section 6056 apply to nonprofit and government employers?
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Are there alternative methods of reporting available to employers under Section 6056?
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Is an employer required to provide the Section 6056 employee statements electronically?
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Do Section 6056 reporting requirements apply to full-time employees who are not offered coverage?
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May an employer hire a third-party administrator to handle Section 6056 reporting requirements?