You may have some time until the Obamacare “play-or-pay” penalties take effect, but it’s still a good idea to look over the final rules on the reporting requirements IRS just issued.
Because even though these final rules look a lot like the proposed regs, the feds did add a few things.
2 types, 1 form
In a nutshell, the reporting rules take effect in 2015 (they must be reported to the feds and workers early in 2016) and apply to employers with 50 or more FTEs and insurers.
The rules require firms and insurers to report info on the health insurance being offered and the individuals receiving that insurance.
Essentially, there are two types of reporting:
1. Tax Code 6055 Reporting – used for self-insured plans by plan sponsors and insurers, and
2. Tax Code 6056 reporting – used by employers subject to the play-or-rules.
However, to help simply the reporting process, a single form will contain both 6055 and 6056 reporting space for employers and insurers.
Here’s how it works: A self-insured plan will fill out both reporting sections, and an insured employer will fill out the 6056 section while its insurer will complete the 6055 section (on a separate form).
Note: The IRS has yet to issue the actual reporting paperwork yet.
‘Streamlined’ reporting process
The final rules also outlined a process where firms could provide a “qualifying offer” to any full-employees to take advantage of a “streamlined” reporting process.
This would eliminate the need for these firms to report monthly, employee-specific info.
According to the feds, this consists of:
“an offer of minimum value coverage that provides employee-only coverage at a cost to the employee of no more than about $1,100 in 2015 (9.5% the Federal Poverty Level), combined with an offer of coverage for the employee’s family.”