Section 6055 Overview
Applies to: Providers of minimum essential coverage (MEC)
Requires reporting entities to: File information with the IRS and provide statements to covered individuals (1094-B and 1095-B)
Purpose: Help administer the individual mandate
Form 1094-B is also known as the Transmittal of Health Coverage Information Returns and it is used to transmit Forms 1095-B to the IRS.
Form 1095-B is also known as the Health Coverage Statement and this is used to report information to the IRS and individuals. It also reports individuals who are covered by minimum essential coverage and are therefore not liable for the individual shared responsibility payment.
Read the Q&A's on Reporting by Health Coverage Providers Section 6055 Whitepaper for more information.
Section 6056 Overview
Applies to: Applicable Large Employers (ALEs)
Requires reporting entities to: File information with the IRS and provide statements to full-time employees (1094-C and 1095-C)
Purpose: Help administer the employer shared responsibility rules and determine eligibility for Exchange subsidies
*Self-funded sponsors that are ALEs must report under both sections, but will use a combined reporting method.
Form 1094-C is also known as the Transmittal of Employer-Provided Health Insurance Offer and Coverage and it is used to report summary information for each employer to the IRS. It also certifies eligibility for transition relief (including medium-sized employer delay) and transmits Forms 1095-C to the IRS.
Form 1095-C is also known as the Employer-Provided Health Insurance Offer and Coverage and it is used to report information about each employee and satisfies combined 6055 and 6056 reporting requirements (for ALEs with self-funded plans)
Read the Q&A's on Employer Reporting of Health Coverage Section 6056 Whitepaper for more information.
Who Reports What?
Small Employer (Insured Plan): NOTHING (except maybe an HRA)
Small Employer (Self-insured Plan): Section 6055, Information about individuals covered under the plan, Form 1094-B & Form 1095-B
Applicable Large Employers (Insured Plan): Section 6056, Information about offer of coverage to FT employees, Form 1094-C & Form 1095-C (Parts I and II)
Applicable Large Employers (Self-insured Plan): Sections 6055 and 6056, Information about individuals covered under the plan AND offer of coverage to FT employees, Form 1084-C & Form 1095-C (Parts I, II & III)
IRS Returns: Notice 2016-4 - Extended Deadline is May 31, 2016 (June 30, 2016, if filed electronically)
Individual Statements: Notice 2016-4 - Extended deadline to March 31, 2016 (May be furnished electronically if requirements are met)
Read the ACA Reporting Deadlines Delayed Whitepaper for more information.
Information Returns: Failure to timely file or include all required and include incorrect information
Individual Statements: Failure to timely file or include all required information and include incorrect information on the statement
June 29, 2015 - The Trade Preferences Extension Act: Increased penalties for returns filed in 2016
Employer Flexible preparing for Hurricane Harvey
To ensure the safety of our colleagues, Employer Flexible’s Houston office will be closed Monday, August 28, 2017 and Tuesday, August 29, 2017. Employer Flexible would like to reassure its valued clients and their employees that they will not experience any interruptions in service as a result of this storm. Employer Flexible’s San Antonio, Austin, and Dallas service centers will be there to service our clients and employees until our Houston office reopens. Our heart goes out to all impacted in Houston and those on the Texas Coastline.