The Internal Revenue code added new reporting requirements under sections 6055 and 6056 related to health insurance coverage provided by insurers and employers. The Affordable Care Act (ACA) created these new reporting requirements. Most employers may be completely unaware that these new reporting requirements are mandated by some very hefty fines, and worse yet, attempting to gather the information that needs to be reported to the IRS after-the-fact may be more difficult and expensive.
In order to avoid penalties under “Play or Pay” ALEs must offer affordable and minimum value health coverage to full-time employees and their dependents and must report to the IRS. The IRS will use the information submitted to determine whether the employees are subject to the new shared responsibility penalty and will also allow the IRS to determine if an employer is liable for shared responsibility penalty.
ACA - Affordable Care Act