Complying with the ACA 6055 and 6056 Reporting Requirements
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Transcript of Complying with the ACA 6055 and 6056 Reporting Requirements
AFFORDABLE CARE ACT------------------------------
Erik C. Olson, CPA/ CVAShareholder – Tax & Business Valuation Services
Todd Covert, Vice President of Sales
Norbert F. Kugele, Partner
Monika Blazeski, Certified Healthcare Reform Specialist
WHY WAS 6055 & 6056 REPORTING REQUIREMENT ADDED TO THE INTERNAL REVENUE CODE?
In simple terms, the individual mandate is the part of the lawthat says all individuals are required to have minimum essentialhealth coverage; much like the fact that every registered vehiclemust be insured.
Employer shared responsibility is the part that states certainlarge employers are required to offer affordable minimumessential health coverage to its employees, OR pay a fee to thegovernment who will then make it available through theexchanges.
THE CODE SECTIONS
The Affordable Care Act added section 6055 to the Internal RevenueCode, requiring every provider of minimum essential coverage toreport coverage information by filing an information return with theIRS and furnishing a statement to individuals (employees). Thisinformation is used by the IRS to administer and ensure compliancewith the individual shared responsibility provision.
Section 6056 of the Internal Revenue Code, requires applicable largeemployers to file information returns with the IRS and providestatements to their full-time employees about the health insurancecoverage the employer offered.
WHAT IS AN ALE?
Style......................... Pale Ale
IBUs......................... 25 IBU
Original Gravity……. degrees plato
Brewed Since........... 2013
Time Frame.............. Year Round
REALLY…WHAT IS AN ALE?
APPLICABLE LARGE EMPLOYER (ALE) DEFINED
An ALE is a business entity that employs 50 or more full-time equivalent employees (FTEs).*
Full-Time EmployeeAn employed person who averages 30 or more hours of service per week or 130 hours per month.
* Full-Time Equivalent Employee (FTE)The number of full-time equivalent employees is determined by adding the numberof full-time employees plus total hours worked by part-time employees in a givenmonth (capped at 120 per employee), divided by 120.
TRACKING AND MEASURING
It is important for those employers that will offer coverage to be able toidentify their full-time employees in advance of coverage periods. A full-timeemployee for this purpose is an employee who is employed on average at least30 hours per week. A monthly equivalent of 130 hours may be used if it isapplied on a reasonable and consistent basis.
Measurement period for full-time equivalent employees can be three to 12months, with a subsequent stability period that generally cannot be shorterthan six months.
For calendar year 2015, Forms 1094-C and 1095-C arerequired to be filed by February 29, 2016, or March 31,2016, if filing electronically.
A FEW PARTING QUESTIONS…
What does the ‘post filing’ experience look like for the employer?
Likelihood of a last minute delay or relief relative
to the 6055/6056 filing?
How are you gearing up to support future developments?