Major plan sponsor and business groups are urging the Biden administration to allow a permanent delay for employers in meeting the Affordable Care Act’s extensive reporting requirements. While complying with these requirements has always been challenging, the groups stress that the pandemic has made it especially difficult for many employers dealing with unprecedented workforce changes and continuing business uncertainty.
The ACA reporting rules require employers and health insurers to report to the IRS information showing which employees are offered coverage (and the terms of the offer) and which individuals have coverage. This information is relevant for a number of ACA purposes, most significantly the employer mandate and eligibility for ACA insurance exchange subsidies.
This information was also relevant for the individual mandate before Congress reduced it to $0 in the 2017 tax law. The IRS has created a number of forms for employers and insurers to use to meet these requirements (i.e., Forms 1094-C, 1095-C, 1094-B and 1095-B). The IRS has provided a number of types of relief for this reporting over the years, which were extended to reporting for the 2020 plan year by Notice 2020-76.
In addition, ERIC is asking for a review of other important employer reporting policies such as:
How and when the IRS and Treasury respond to the comments remains to be seen, but we will be watching closely and will report any new developments.