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What Employers should know about ACA Reporting Requirements
for 2020
This article further explores the
following points:
- Reporting Requirements under section 6056 and 6055
- ACA 1094 and 1095-B/C Reporting Deadline
- Information Required for ACA 1095 Reporting
ACA Reporting Requirements -
An Overview:
- Updated september 14, 2020 - 8.00 AM
- Admin, ACAwise
This instruction would help employers to know their 2020 ACA Reporting Requirements.
When the Affordable Care Act was passed, the IRS updated their Internal Revenue Code to include Sections 6055 and 6056. Sections 6055 and 6056 of the IRC outline the protocol for reporting ACA compliance and offers of coverage to the IRS.
Table Of Content:
- Reporting Requirements under Section 6056
- Reporting Requirements under Section 6055
- Reporting Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
- 2020 ACA 1094 and 1095-B/C Reporting Deadline
- Information Required for 2020 ACA 1095 Reporting
- Meet your 2020 ACA Reporting Requirements with ACAwise
Reporting Requirements under
Section 6056
IRS Section 6056 states that Applicable Large Employers must provide minimum essential coverage to their full-time employees and report that to the IRS and furnish statements to their employees.
ALEs must use Forms 1094-C and 1095-C to report their ACA information under Section 6056.
Reporting Requirements under
Section 6055
IRS Section 6055 states that any person who provides minimum essential coverage to individuals must report the offered coverage information to the IRS and furnish statements to individuals. Minimum essential coverage includes government-sponsored programs, eligible employer-sponsored plans, individual market plans, and other coverage the Department of Health and Human Services designates as minimum essential coverage.
In other words, Section 6055 says that health insurance issuers or carriers, plan sponsors of self-insured group coverage, and executive departments/agencies of governmental units must report those they covered on Forms 1094-B and 1095-B.
We make your ACA Filing more simple. Send us your requirements to the email [email protected].
Reporting Form 1095-C, Employer-Provided Health Insurance Offer
and Coverage
IRS designed Form 1095-C for requesting ALEs to report the health coverage information offered to the employees. It also helps the IRS to determine whether an ALEs owe a payment under the employer shared responsibility provisions under section 4980H.
If you are an ALE, you must report the offer of coverage, covered individuals information to the IRS on time. You must also furnish the copies to the employees without fail.
You must also report to the IRS with Form 1095-C, for the information of the part time, retired, terminated, rehire employees. When reporting Form 1095-C, you must be aware of Section 4980H safe harbor & Offer of coverage codes.
If you are not aware of generating codes, please Contact ACAwise through Phone (704)-954-8420 or email your requirements to [email protected].
2020 ACA 1094 and 1095-B/C Reporting Deadline
IRS has extended the recipient copy deadline for the 2019 Tax year to
March 02nd, 2020.
The e-filing deadline is March 31st, 2020. If you choose to file by paper the deadline is on February 28th, 2020.
Information Required for 2020 ACA 1095 Reporting
To complete the Forms for Sections 6055 and 6056 reporting, you'll need the
following information:
- The covered individual or employee's data (name, address, and SSN/TIN)
- The plan provider's data (name, address, EIN, and contact info)
- For self-insured group health plans, the data of the plan sponsors (name, address, EIN, and contact info)
- The offer of coverage code for each recipient/employee, broken down by month
- The recipient/employee premium share of coverage, by month
- Any safe harbor relief codes that
are applicable - The covered individual's spouse and dependent(s) information, if applicable (name, SSN or DOB, and months covered)
Updates in 2020 ACA Reporting:
- IRS has confirmed to extend the recipient copy deadline to
March 02nd, 2020. - The IRS has released 2020 draft Forms and instructions to help employers prepare to report on the health coverage offered to the employees in 2019. The final forms are expected to be issued before the end of the year.
- The other clear message on the draft version is to continue with the 2018 tax year reporting requirements.
Meet your 2020 ACA Reporting Requirements with ACAwise
Take the risk out of ACA reporting. Get Started with ACAwise, a cloud based ACA reporting solution. ACAwise handled ACA reporting for various businesses like yours and help them to stay ACA compliant.
We provide two different reporting services for you to choose based upon your requirements.
Send us your requirements to the email [email protected]. One of our support member will contact you and assist
your further.