In March 2014, the Internal Revenue Service (IRS) released final regulations on the reporting requirements under the Affordable Care Act (ACA), which are designed to enforce the individual and employer mandates. In 2016, employers and insurance issuers will be required to provide data they start collecting in 2015 to the IRS, and the regulations provide guidance on the data elements, the process of reporting to the IRS, and the furnishing of statements to individuals. The final regulations provide for combined reporting using a single form for employers that self insure and simplified reporting alternatives for employers that offer affordable coverage to substantially all full-time employees. After releasing draft forms and instructions, in February 2015, the IRS released final 2014 forms and instructions for those employers choosing to submit reporting on a voluntarily basis. See the below Resources section for additional information on the reporting requirements, final regulations on MEC reporting, final regulations on ALE reporting, and IRS Forms and instructions.  

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AFFORDABLECAREACT

Information Reporting and the Employer Mandate

September 26, 2016

In March 2014, the Internal Revenue Service (IRS) released final regulations on the reporting requirements under the Affordable Care Act (ACA), which are designed to enforce the individual and employer mandates. The regulations provide guidance on the data elements, the process of reporting to the IRS, and the furnishing of statements to individuals.

The final regulations provide for combined reporting using a single form for employers that self insure and simplified reporting alternatives for employers that offer affordable coverage to substantially all full-time employees.

See the below Resources section for final regulations on Minimum Essential Coverage (MEC) and Applicable Large Employer (ALE) reporting.

Effective Date:

In 2016, employers and insurance issuers were required to provide data they collected in 2015 to the IRS. Annually, information returns are due no later than Feb. 28 of the following calendar year (or March 31 if filing electronically). Individual statements are due no later than Jan. 31 of the following calendar year.

The reporting is divided into two segments:

  • MEC reporting applies to health insurance issuers and sponsors of self-insured health plans
  • ALE reporting applies to employers with at least 50 full-time equivalent employees

Employer Impact:

Employers subject to the reporting requirements must collect the information required on the information returns and employee statements.

Payroll Technology:

Ceridian offers support for Forms 1094-C and 1095-C to its Payroll and Tax Service customers, including printing the employee copies and filing with the IRS.

Resources:

Final regulations on MEC reporting.
Final regulations on ALE reporting.