The ACA sets massive new reporting requirements for all employers with 50 or more FTE employees. (Note: Employers with 50 to 99 FTE employees may not have had to offer coverage in 2015 but still must file the paperwork in 2016, whether you offered coverage or not.) All employers with 50 or more FTEs, depending on whether they are fully or self-insured, have to send out either 1095-B or 1095-C forms to employees, and file copies with the IRS to verify the employer's compliance with the employer responsibility requirement and the employee's compliance with the individual responsibility requirement. Employers must also file transmittal forms (1094-B or 1094-C) to transmit the individual 1095-Bs and 1095-Cs to the IRS. These reports were originally due to the IRS in February 2016. However, on December 28, the IRS issued a notice delaying the reporting requirements slightly.
- 1095-B and 1095-C statements must be provided to employees by March 31, 2016.
- Employers must file the individual forms and the 1094-B or 1094-C transmittal forms by May 31, 2016.
The returns and statements are based on data the employer tracked in 2015. The reporting requirements are part of the new Sections 6056 and 6055 of the federal tax code. Section 6056 requires businesses that employ 50 or more FTE employees to certify whether they offered minimum essential coverage to full-time employees. The reports must be submitted individually by any entity within a common control group that has 50 or more FTE employees “ even if an entity on its own employs fewer than 50 FTEs. Here's just a small sampling of the data employers will be required to compile each calendar month, and report by employee tax ID number: number of employees; number of full-time employees; whether an employee is eligible for a health-care coverage offer under the ACA; the employee' premium contribution; and how the employer determined whether the health care coverage meets the ACA's affordability standards. Section 6055 requirements apply to any entity that offers a health plan, such as self-insured employers and health insurers. These reports will tell the IRS who was enrolled in coverage and for what months. To complete this filing, tax ID numbers must be collected for the dependents of full-time employees. Questions? Contact Tim Sekiya, Texas Restaurant Association Director of Insurance, via email or 800.395.2872.