We are offering a webinar on August 19th for Large Employers (those with 50 or more full-time equivalent employees – including part time and seasonal employees). We encourage you to register today.
The Affordable Care Act (ACA) imposes significant information reporting responsibilities for insurance companies, plan sponsors, and larger employers starting in 2016 for the 2015 tax year. The new information reporting system is similar to the current Form W-2 reporting system; an information return will be prepared for each applicable individual, and these returns will be filed with the IRS using one transmittal form. Filing requirements are based on an employer’s health plan and number of employees.
What will Concordia Plan Services need to provide?
- Proof of Minimum Essential Coverage: Forms 1095-B (proof of Health Coverage for the individual to use when filing his/her tax return) and Form 1094-B (Transmittal form to the IRS summarizing the Forms 1095-B provided)) need to be produced by all insurance companies or plan sponsors (like Concordia Plan Services). These forms report the name, address, and Social Security number of all individuals (including dependents) that are covered under the medical plan and the number of months each individual had at least one day of coverage.
- In January 2016 Concordia Plan Services (or its benefits administrators) will provide a Form 1095-B to members who were covered by the Concordia Health Plan in 2015. (Members enrolled in CHP Medicare supplemental coverage will not receive this notice from CPS because Medicare is their Primary insurance carrier and the government will be issuing information to those with Medicare.) CPS will also produce the 1094-B Transmittal form and send it to the IRS.
What will employers offering health coverage need to provide?
- Proof of Coverage Offer and Affordability: Forms 1095-C (Employer-Provided Health Insurance Offer and Coverage for the individual) and Form 1094-C (Transmittal form to the IRS summarizing the Forms 1095-C provided) will need to be filed by applicable large employers as defined by the ACA. Applicable large employers (ALEs) are those that had, on average, at least 50 full-time equivalent employees (including part-time and seasonal employees) during the preceding calendar year. (Please note: Employers under this employee-count threshold do not have to file Forms 1095-C or 1094-C.) For ACA purposes, full-time employees are those who work, on average, at least 30 hours per week.
- Because these forms require information beyond what is recorded by Concordia Plan Services, applicable large employers must provide these forms. Paychex provides employer shared responsibility services to help employers determine if they are ALEs, what is required if they are, and to file these forms with the IRS. For more information call Paychex at 877-758-0036 or visit http://www.paychex.com/health-reform/.
How can LCMS organizations learn more?
- Concordia Plan Services will be hosting a webinar for Applicable Large Employers to cover their reporting requirements on Aug 19 at 1:30 p.m. Visit ConcordiaPlans.org/webinars to register. The webinar will also be recorded for viewing at a later date.
- Though final instructions for producing and using these new tax forms have not yet been provided by the IRS, we wanted to cover this topic with our larger employers so that they would have an understanding of the requirements that are coming soon. CPS will continue to monitor this topic and will share information throughout the year as it becomes available.