| | November 20158CIOReviewACA Reporting: Navigating the 1094/95 MazeBy Dennis Fiszer, CCO, HUB InternationalIn just a few weeks, the Affordable Care Act (ACA) directs that health insurance issuers and affected employers file a statement to covered individuals (with copy to IRS) reporting the type, terms and conditions of health care coverage offered during the year. The reporting requirements are an enforcement mechanism that the IRS will use in determining whether an employer owes a payment under the employer mandate and whether an individual owes a payment under the individual mandate.For anyone who has reviewed the material, the new IRS reporting forms and instructions likely represent a daunting challenge. Moreover, for any employer who may only now belearning of the requirements, quick action is needed. Which Employers Report?All employers subject to the employer mandate (employers with 50 or more full-time employees and/or full-time equivalents including workers inside a control group) are required to annually issue statements (with copy to the IRS) on the coverage offered to their full-time employees and their dependent children. Based on the way that the IRS counts full-time employees, many companies may be larger than they think. Who Gets a Statement?Any employee, who has been full-time for at least one month in the calendar year, receives a statement, even if waiving coverage,as long as they work for an employer subject to the ACA health coverage mandate. (Such a statement would indicatean absence of coverage). What Kind of Forms?The IRS is using forms labeled 1094 and 1095 series. Employee statements will be completed on IRS Form 1095 and issued to workers by January 31. (Statements must reach the IRS by February 28, or March 31 if filed electronically) following the applicable calendar year. The IRS also requires a "transmittal"Form 1094 (generally for each EIN subject to reporting) which communicates generalized information about the employer and details about the workforce. opinionin my
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