The ACA’s Pay-or-Play Mandate holds that all employers with over 50+ Full Time Equivalent employees must provide health coverage by 2016. As part of this mandate, Applicable Large Employers (ALEs) report to the government that they are providing benefits as part of Code Section 6056 reporting.
In 2016, penalties for incorrect submissions or failure to complete the new IRS forms for organizations with more than 50 full-time employees can cost up to $250 per IRS return and employee statement at a minimum and a $1.5 million maximum penalty.
Applicable Large Employers (ALEs) must comply with Code 6056 reporting, which is used by the IRS to track “pay-or-play” and to determine individuals’ eligibility for premium tax credits. Forms include:
• Form 1094-C (transmittal to IRS)
• Form 1095-C (an employee statement)
Employers filing 250 or more Forms 1095-C must file the forms electronically (including Form 1094-C).
Ask Potomac for more details regarding Safe Harbors, differences in reporting for full-insured and self-insured employers, determining full-time status, and more.