Affordable Care Act: Simplified options for employer reporting

Employers, insurers and other reporting entities must report certain essential information under the ACA

This is the second installment in the six-part series (Part 1) regarding new rules that the United States Department of Treasury and the Internal Revenue Service (IRS) issued for the enforcement of the information reporting provisions for insurers and certain employers under the Affordable Care Act (ACA).

The ACA will begin to be enforced in 2015. The government will use reports from providers of minimum essential coverage and applicable large employers to enforce the individual and employer mandates, and to administer premium tax credits. When health insurers and plan sponsors file taxpayer information with the IRS, they must also provide a copy to the taxpayer, along with the health insurers’ and/or plan sponsors’ own contact information (name, address and phone number). The information from health insurers will enable taxpayers and the IRS to verify whether taxpayers were provided minimum essential coverage during the tax year. The coverage reports from providers of minimum essential coverage and from applicable large employers (generally employers with 50 or more full-time or full-time equivalent employees in the prior year determined on a controlled group basis) are required under the Internal Revenue Code (IRC), Section 6055.

Contributing Author

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Kimberly James

Kimberly James is Of Counsel in the Houston office of McGlinchey Stafford . Kim handles labor and employment law, as well as other general business...

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