By Joanna Kim, Executive Editor
The Internal Revenue Service has published final versions of the forms and instructions that employers and insurers must use to meet their Affordable Care Act reporting requirements for tax years beginning in 2015. The first forms are due in 2016 for 2015 coverage.
The IRS will use the information provided by these files when it reviews the tax returns of individuals who report whether they have met their obligation to have minimum essential coverage or pay a penalty.
Larger companies, known as Applicable Large Employers (ALE) under the ACA, with 50 or more full – time employees or full-time-equivalent employees, are required to offer insurance coverage or pay a penalty.
(Transitional relief is available for ALEs with 50-99 full-time and full-time equivalent employees for 2015 provided such ALEs satisfy certain requirements.)
ALEs must file Form 1095-C , which includes a description of the healthcare coverage the company provides, a list of full-time employees, the coverage offered to each of these employees, and the months for which the coverage applied. Form 1094-C is used to transmit. Instructions for both are available online.