Excerpt from the Guide:
There were numerous legislative efforts by the Trump administration in 2017 to repeal and replace the Affordable Care Act, including retroactively eliminating the individual and employer shared responsibility mandates. In early December, there have been discussions that Republicans may again try to repeal those mandates as part of their tax reform bill. However, to date, no such repeal bills have passed, and although the most recent proposed tax reform bill from the Senate includes a repeal of the individual mandate beginning in 2019, it does not include a repeal of the employer mandate. In the absence of a repeal, employers should be prepared to respond to any IRS penalty letters and continue to prepare for 2017 reporting (in 2018).
The IRS has released the final versions of its employer and provider reporting forms and instructions for 2017. Links to the forms and instructions are below:
- Form 1094-C: irs.gov/pub/irs-pdf/f1094c.pdf
- Form 1095-C: irs.gov/pub/irs-pdf/f1095c.pdf
- Form 1094-C / 1095-C Instructions: irs.gov/pub/irs-pdf/i109495c.pdf
- Form 1094-B: irs.gov/pub/irs-pdf/f1094b.pdf
- Form 1095-B: irs.gov/pub/irs-pdf/f1095b.pdf
- Form 1094-B / 1095-B Instructions: irs.gov/pub/irs-pdf/i109495b.pdf
Additional IRS guidance can be found here:
- Q/A’s on Reporting by Health Coverage Providers (Section 6055): irs.gov/affordable-care-act/questions-and-answers-on-information-reporting-by-health-coverage-providers-section-6055
- Q/A’s on Reporting of Offers of Health Coverage by Employers (Section 6056): irs.gov/affordable-care-act/employers/questions-and-answers-on-reporting-of-offers-of-health-insurance-coverage-by-employers-section-6056
- Q/A’s about Information Reporting by Employers on Form 1094-C and Form 1095-C: irs.gov/affordable-care-act/employers/questions-and-answers-about-information-reporting-by-employers-on-form-1094-c-and-form-1095-c
- Q/A’s on Employer Shared Responsibility Provisions Under the ACA: irs.gov/affordable-care-act/employers/questions-and-answers-on-employer-shared-responsibility-provisions-under-the-affordable-care-act
This guide reviews the 2017 forms and instructions and notes relevant changes from 2016. It also addresses IRS guidance on the solicitation of social security numbers (“SSNs”) or taxpayer identification numbers (“TINs”) and the treatment of cash “opt-out” payments for reporting purposes. It also provides guidance for employers that receive Letter 226J, notice of a proposed shared responsibility payment.
The reporting requirements are complex, due in part to how the health care reform law was drafted. The Affordable Care Act added two new sections to the Internal Revenue Code: Sections 6055 and 6056. The sections are found next to each other in the Code; however, they apply to different types of entities. Section 6055 applies to providers of health insurance, such as health insurance carriers and employers that sponsor self-insured plans. Section 6056 applies to “applicable large employers” or “ALEs”, which are employers with 50 or more full-time equivalent employees in the prior calendar year.
To further complicate things, the reporting forms come in two different “series” – the B-Series and the C-Series forms. Employers may use either or both sets depending on their company size and whether their group health plan is self-insured or fully insured. Our goal with this guide is to provide some clarity and best practices for employers.
Download the ACA Reporting Guide
Marathas Barrow Weatherhead Lent, LLP
About The Authors. This alert was prepared for AG. Insurance Agencies by Marathas Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act.