Who is responsible for reporting under Internal Revenue Code 6055?

plan sponsor
The plan sponsor is responsible for Section 6055 reporting for a self-insured group health plan. In general, the plan sponsor is the entity that establishes or maintains the plan. The employer is the plan sponsor for a plan established or maintained by a single employer.

What are the ACA reporting requirements for employers?

In general, the reporting requirements apply if you’re an employer with 50 or more full-time employees or equivalents, a self-insured employer, regardless of size, or a health insurance provider. The IRS forms used to report this information are 1095-B and 1095-C, along with transmittal forms 1094-B and 1094-C.

What is a 6055 report?

The Affordable Care Act added section 6055 to the Internal Revenue Code, which requires every provider of minimum essential coverage to report coverage information by filing an information return with the IRS and furnishing a statement to individuals.

Do small employers need to report health insurance on w2?

W-2: Small Business Employers that provide “applicable employer-sponsored coverage” under a group health plan, such as a small group plan with Covered California, are required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.

What are the ACA requirements?

If an employer has 50 or more full-time equivalent (FTE) employees, the ACA requires that they offer affordable coverage to at least 95% of their full-time employees. Employees that work at least 30 hours each week are defined as full-time under the ACA.

What is an applicable large employer under ACA?

An applicable large employer is any company or organization that has an average of at least 50 full-time employees or “full-time equivalents” or “FTE.” For the purposes of the Affordable Care Act, a full-time employee is someone who works at least 30 hours a week.

What is qualifying offer method?

The Qualifying Offer method allows an employer to complete the Form 1095-C under simplified rules and to furnish to certain full-time employees a document other than the Form 1095-C.

Are health insurance premiums paid by employer taxable income?

Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is typically excluded from taxable income.