Important Tax-Related Reporting – Action Required
Dear Group Administrator:
Although we have been anticipating changes, as of the date of this letter the IRS is continuing the requirement of 6056 reporting under the Affordable Care Act. Section 6056 of the Internal Revenue Code (IRC) requires all Applicable Large Employers (ALE) to provide employees and the government with information about employer-sponsored health coverage and full-time employees. An ALE is any employer that has 50+ full-time employees in the previous year. Full-time employees are defined as those working 30+ hours weekly or 130+ hours monthly. The IRS will use this information to administer the employer “pay or play” mandate, as well as to determine whether an employee who obtained individual coverage on the state health insurance exchange is eligible for an individual premium tax credit.
Historically, the IRS has provided relief to employers with regards to ACA compliance by extending the filing deadline for providing forms to employees by 30 days. While the IRS Information Reporting Advisory Committee (IRPAC) requested this relief for 2018, as of the date of this letter the IRS has not provided any guidance of such.
In that we feel that this requirement will change in future months/years, we will again conduct the reporting as we did for the last few years, via a spreadsheet input. We appreciate that is a tedious process, however the reality is that any reporting methodology is time consuming, if you are a current payroll client, we will provide you a spreadsheet of the employee demographic data to make this already time-consuming process a bit easier. If you are interested in obtaining this employee data, please contact our firm and a payroll specialist will provide you this information in an Excel document.
We will again simply cover our direct costs, and charge $50 for setup and $3.50 per form processed plus postage, if you are interested in having our firm mail. If you are interested in having our firm provide this reporting on your behalf, I would ask that you visit our website, complete the client information form, and download the spreadsheets, guides, etc. If you need additional assistance with this or would like a “refresher” on 1095 reporting, please RSVP for one of the upcoming webinars that our firm is hosting. Information about these webinars can also be found on our website. We ask that completed spreadsheets are returned to our firm either through secure email or our Sharefile system no later than Monday January 20nd
We are committed in ensuring that you have the latest information and will be sure to get it out to you as soon it is released. Please stay connected through our website as well as emails and seminars which will be held throughout the 2019 year. As always, thank you for your continued business and please never hesitate to call our offices with any questions or concerns. All of us at EBC wish you and your families the very best in the upcoming holidays.
Christopher J. Fiorello, CBC, GBDS, HCRS
Partner – Insured Services