Tuesday, November 3, 2015

Self-Insured Employers Must File Health Coverage Returns with the IRS in 2016

Dave Kyllo

Tax season begins in less than two months and regardless of size, all employers that provide self-insured health coverage to their employees are treated as coverage providers. These employers must file an annual return reporting certain information for each employee they cover according to an IRS tax tip for employers.

The information reporting requirements are first effective for coverage provided in 2015. Thus, health coverage providers will file information returns with the IRS in 2016, and will furnish statements to individuals in 2016, to report coverage information in calendar year 2015.

Employers should report this information on Forms 1094-B and 1095-B or on Forms 1094-C and 1095-C, depending on whether the employer is an applicable large employer for purposes of the employer shared responsibility provisions. An applicable large employer is generally defined as an employer that employed an average of at least 50 full-time employees – including full-time equivalent employees – in the preceding calendar year. `

The information that a provider must report to the IRS includes the following:

· The name, address, and employer identification number of the provider.

· The statement recipient’s name, address, and taxpayer identification number (TIN), or date of birth if a TIN is not available. If the statement recipient is not enrolled in the coverage, providers may, but are not required to, report the TIN.

 · The name and TIN, or date of birth if a TIN is not available, of each individual covered under the policy or program and the months for which the individual was enrolled in coverage and entitled to receive benefits.

The IRS tax tip contains additional information about these new reporting requirements and links to helpful resources. 

Self-insured health coverage is one of several health coverage options available to AHCA/NCAL Members through AHCA/NCAL Insurance Solutions. Health insurance is the second most costly workforce expense after payroll. Members who are interested in comparing their health benefit options are encouraged to contact AHCA/NCAL Insurance Solutions to see if that program can save them money or call Dave Kyllo at 202-898-6312 or Nick Cianci at 202-898-2841. 

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