IRS Issues Final Rules on Large Employer Reporting Requirements
March 12, 2014
Section 6056 requires employers of 50+ FTEs (Applicable Large Employer) to report the type and affordability of health coverage offered to their full-time employees who work 30 or more hours a week for the purposes of the employer “Pay or Play” Shared Responsibility Mandate.
Simplified Option for Employer Reporting as outlined in the IRS FAQ: If the employer’s plan meets certain requirements. These requirements may form a planning opportunity for Superior clients. We are evaluating this opportunity, called a “qualifying offer.”
No alternative filing date for non-calendar year plans.
Reporting to Full-Time Employees: Similar to the 5500’s Summary Annual Report, the regulations will require a statement report to employees due not later than January 31 (February 1, 2016 is the first one!) This report can be provided with the employee’s W2, but the IRS rejected reporting on the W2 as a way to satisfy this requirement. The employee statements can be provided electronically but only if an employee consents in writing to receive them electronically.
No Penalties for Good Faith Effort in 2016: “The final regulations also include short term relief from penalties to allow additional time to develop appropriate procedures for data collection and compliance with these new reporting requirements. For returns and statements filed and furnished in 2016 to report offers of coverage in 2015, the IRS will not impose penalties on ALEs that can show they make good faith efforts to comply with the information reporting requirements.”
Superior Benefit Plans will be working with our clients to meet the reporting responsibilities requirements. Not a Superior Benefit Plan yet? You need to be! Contact us for more information on the final reporting requirements.
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