The Bloomberg BNA Payroll Library gives you reliable, up-to-date guidance and analysis in every area of payroll administration and compliance, and includes hundreds of interactive forms and links to related federal, state, and local sites.
Reporting requirements under the Affordable Care Act are to take effect in early 2016 but because many employers still are dealing with IRS compliance requirements, some are seeking more time to file that surpasses extensions already granted, companies and business groups said.
The two main issues facing employers are the need for more clarity in the procedures for filling out ACA Form 1095-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Return, and how minimum essential coverage is reported when an individual is covered through two or more plans offering such coverage at the same time.
Employers filing at least 250 Forms 1095-C with the Internal Revenue Service are required to use the electronic ACA Information Returns (AIR) program, said Benjamin Lupin, senior regulatory adviser for health and group benefits at Towers Watson & Co. in Philadelphia.
Lupin, speaking Nov. 18 at an American Payroll Association chapter meeting in Richmond, Va., said those electronically filing ACA forms should identify a responsible official and contacts, separately register apart from other form-filing systems with IRS e-services for AIR and apply for a transmitter control code. Employers and information technology departments should work together to test the system, he said.
The IRS made the AIR system available to employers Nov. 2 for testing the 2015 forms, the agency said Nov. 18 in a web presentation.
In Part 2 of Form 1095-C, employers are required to use numerous codes that are dependent on the coverage made available and the employee status of each individual, Lupin said.
For an employee who was offered coverage during the annual enrollment period and elected coverage for the full 12 months of the year, employers are to put code 1E on line 14 of Part 2 in the column “All 12 Months” and 2C on line 16 in the same column. On Line 15 of the same column, employers are to enter the amount, including cents, of the employee share of the lowest-cost monthly premium for self-only minimum essential coverage providing minimum value that is offered to the employee. No other entries in Part 2 would be required, Lupin said.
Other scenarios Lupin presented require filling in the monthly columns using a mix of the codes provided. The process is further complicated by the requirements on the transmittal forms, he said.
Separately, the National Payroll Reporting Consortium asked the IRS on Nov. 18 for the ability to use either IRS or Social Security Administration systems to verify tax identification numbers and names reported on ACA forms. The American Benefits Council asked the IRS to adopt “the broadest possible rule” so as to limit the need to report supplemental health coverage, while the National Business Group on Health asked the agency to allow providers to only report minimum essential coverage enrollment one time if they provide multiple plans covering the same individual.
To contact the reporter on this story: Michael Baer in Washington at email@example.com
To contact the editor responsible for this story: Michael Trimarchi at firstname.lastname@example.org.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)