HR Outsourcing News Roundup: IRS Draft Forms and ACA Compliance

By Mickey Matran / August 7, 2014 / Uncategorized No Comments

Last month, the Internal Revenue Service released draft forms, prototypes of the forms employers will need to use to comply with reporting requirements mandated by the Affordable Care Act — also known as Obamacare, PPACA and ACA. The Department of the Treasury’s fact sheet clarifies which employers are subject to these reporting requirements. What do these forms mean for employers and businesses that want to stay compliant?

This week’s HR Outsourcing News Roundup brings you articles and blog posts that discuss the specifics of the IRS’s draft forms, how they relate to ACA compliance and what they mean for businesses.

• ACA Reporting Update: IRS Releases Draft Forms. Ceridian: “One, IRS intends to implement the ACA reporting requirement as a matter of law and as an enforcement tool. The appearance last week of the draft forms in many ways dashes hopes for another delay in the reporting requirement. Two, IRS is providing a much-needed ‘heads-up’ about the specific information employers will be expected to collect and report to the government.”

 

• IRS Releases Draft Forms for Reporting of Employee Health Coverage Under ACA. Bloomberg BNA: “The reporting requirements fall under I.R.C. Sections 6055 and 6056 and are intended to aid the IRS in determining whether employers and individuals have met the compliance requirements of the ACA. The filing deadline for the information reports is similar to that of Forms W-2, Wage and Tax Statement, and Forms 1099: Jan. 31 to employees and no later than Feb. 28 for filing with the IRS, or March 31 if filing electronically. Employers choosing to provide only electronic copies to employees must separately obtain consent from workers, according to final rules (T.D. 9660, RIN 1545-BL33) released March 5 by the Treasury Department.”

 

• Monthly Benefits Update — July 2014. JD Supra: “Under Code Section 6055, health insurers and employers (regardless of size) that sponsor self-insured health plans are required to report information regarding individuals covered under their health plans. This information must be reported using Form 1095-B, indicating the months for which each family member had coverage during the previous calendar year. Each primary insured person under the plan must be provided a copy of Form 1095-B with his or her pertinent information. All Forms 1095-B must be transmitted to the IRS in a single package using Form 1094-B as an accompanying transmittal form.”

 

• IRS Issues Updates on Individual and Employer Mandate Compliance. California Healthline: “The forms streamline the reporting requirements for businesses and drop three categories of required information. For example, employers can now file one form for people who have coverage all year, instead of filing a form for each individual every month. In addition, self-insured employers will now have to fill out one form, instead of two.”

 

• An Ounce Of Prevention For The ACA’s Second Open Enrollment. Health Affairs Blog: “Approximately 87 percent of Marketplace enrollees claimed premium tax credits, of which an estimated 85 percent, or six million, actually paid premiums. (We assume a disenrollment rate of 3 percent per month since April 2014, which is conservative compared with the Massachusetts Health Connector’s experience and in line with the assumptions of several State-based Marketplaces.) Many of the original six million, plus more recent enrollees, will experience their second enrollment between November 15, 2014 and February 15, 2015. They will also file with the IRS for a premium tax credit as early as January 2015.”

 

If you have more questions about ACA compliance, please contact us. Our team is happy to share its expertise.

HR Solutions is a human resources outsourcing firm based in Baton Rouge, Louisiana. We eliminate human resources headaches for businesses with 10 to 1,000 employees by handling their payroll, employee benefits, regulatory compliance and other staffing needs. Contact us to learn how we can streamline your company’s human resources function to save money and reduce risk.

---