Health Care Information Reporting: Seven Things Employers Can Think About Now
If your organization is an applicable large employer (ALE), you must report information about the health care coverage you offered to your full-time employees. As an employer, it’s not too early to start thinking about these seven facts related to your information reporting responsibilities under the health care law.
Key Points for Employers:
- Reporting Obligation
The health care law requires ALEs to report information about health insurance coverage offered to their full-time employees and their dependents, as well as to the IRS. - Information to Report
ALEs must report details about themselves, the coverage they offered (if any), and the individuals covered under the policy. - Employee Statements
ALEs are required to furnish a statement to each full-time employee that includes the same information provided to the IRS. This must be done by January 31, 2017. - Electronic Filing Requirement
ALEs that file 250 or more information returns during the calendar year must file the returns electronically. - IRS Filing Forms and Deadlines
ALEs must file Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, with the IRS annually. The deadlines are:- February 28, 2017, for paper filings
- March 31, 2017, for electronic filings
Forms 1095-C are filed alongside the transmittal form, Form 1094-C.
- Self-Insured Employer Requirements
Self-insured employers that are also ALEs must combine reporting under both provisions by filing a single information return, Form 1095-C, and transmittal, Form 1094-C. - ACA Assurance Testing System (AATS)
The ACA Assurance Testing System opens November 7, 2016, for tax year 2016 testing.
- Software developers, including employers and issuers who passed AATS for tax year 2015, will not have to retest for tax year 2016. The Tax Year Software Packages will be moved into Production status.
- New participants need to comply with test requirements for tax year 2016.
For more information, see Publication 5165.
Suggested Additional Resource
For updates or clarifications on reporting obligations, always consult the latest IRS guidance on ACA compliance.
Frequently Asked Questions
What is an Applicable Large Employer (ALE)?
An ALE is an employer with 50 or more full-time employees or equivalents. These employers are required to report health coverage information under the Affordable Care Act (ACA).
What forms must ALEs file to report health care coverage?
ALEs must file IRS Form 1095-C for each full-time employee and the transmittal Form 1094-C annually to report the health insurance coverage they offered.
When are the filing deadlines for ACA reporting?
Paper filings must be submitted by February 28, and electronic filings by March 31 of the following calendar year.
Do all ALEs need to file electronically?
Only ALEs filing 250 or more information returns in a year are required to submit their ACA reports electronically to the IRS.
What is the ACA Assurance Testing System (AATS)?
AATS is a system that allows employers and software developers to test their ACA information returns with the IRS before the production phase begins. New participants must complete testing to be approved.