Employer Reporting of Health Coverage—Sections 6055 & 6056
The Affordable Care Act (ACA) created reporting requirements under Internal
Revenue Code (Code) Sections 6055 and 6056. Under these rules, certain
employers must provide information to the IRS about the health plan
coverage they offer (or do not offer) to their employees.
This ACA Overview describes the Section 6055 and Section 6056 reporting
requirements under the ACA. Please contact Central PA Benefit Solutions for
more information on Section 6055 and Section 6056 reporting.
Under both Sections 6055 and 6056, each reporting entity must file all of the following with the IRS:
• A separate statement for each individual who is provided minimum essential coverage (MEC) under Section 6055, or for each of the ALE’s full-time employees under Section 6056; and
• A single transmittal form for all of the returns filed for a given calendar year. Under Code Section 6055, reporting entities will generally file Forms 1094-B (a transmittal) and 1095-B (an information return). Under Code Section 6056, entities will file Forms 1094-C (a transmittal) and 1095-C (an information return) for each full-time employee for any month. Entities reporting under both Sections 6055 and 6056 will use a combined reporting method by filing Forms 1094-C and 1095-C.
• Section 6055 applies to health insurance issuers, self-insured plan sponsors, government agencies that provide government-sponsored coverage, and other providers of minimum essential coverage.
• Section 6056 applies to applicable large employers—the employers subject to the employer shared responsibility rules (those with at least 50 full-time employees, including full-time equivalents).
Purpose of Reporting
This reporting is intended to:
• Promote transparency in health plan coverage and costs; and
• Provide the IRS with information to administer the employer shared responsibility rules and individual mandate.
Download the full PDF here – Employer Reporting of Health Coverage—Sections 6055 & 6056