REPORTING REQUIREMENTS
(Use this chart for reference)
UPDATE: Due dates for 2016 Reporting are as follows:
– Forms 1095-B and 1095-C due to employees (to be postmarked if mailed) by January 31, 2017
– Forms 1094-B, 1095-B, 1094-C and 1095-C due to IRS electronically by March 31, 2017
* At this time no additional extensions will be granted
Beginning in 2014, large employers with 50 or more full-time-equivalent employees and will have certain reporting requirements with respect to their full-time employees.
Employers will have to file a return including:
- The employer’s name, address and employer identification number;
- A certification as to whether the employer offers its full-time employees (and dependents) the opportunity to enroll in minimum essential overage under an eligible employer-sponsored plan;
- The length of any waiting period;
- The months that coverage was available;
- Monthly premiums for the lowest-cost option;
- The employer plan’s share of covered health care expenses;
- The number of full-time employees; and
- The name, address, and tax identification number of each full-time employee.
Additionally, an offering employer will have to provide information about the plan for which the employer pays the largest portion of the costs (and the amount for each enrollment category).
The employer must also provide each full-time employee with a written statement showing contact information for the person preparing the required return, and the specific information included in the return, for that individual employee. An employer may enter into an agreement with a health insurance issuer to provide necessary returns and statements.
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer’s excludable contribution to health coverage continues to be excludable from an employee’s income, and it is not taxable. This reporting is for informational purposes only and will provide employees useful and comparable consumer information on the cost of their health care coverage.
Employers that provide “applicable employer-sponsored coverage” under a group health plan are subject to the reporting requirement. This includes businesses, tax-exempt organizations, and federal, state and local government entities (except with respect to plans maintained primarily for members of the military and their families). However, federally recognized Indian tribal governments are not subject to this requirement.
Transition Relief
For certain employers, types of coverage, and situations, there is transition relief from the requirement to report the value of coverage on the 2012 Forms W-2 (the forms for calendar year 2012 that employers generally are required to provide employees in January 2013). This relief will apply to future calendar years until the IRS publishes additional guidance. However, any guidance that expands the reporting requirements will apply only to calendar years that start at least six months after the guidance is issued. See the “Optional Reporting” column in the below chart for the employers, types of coverage, and situations eligible for the transition relief.
UPDATE FOR 2017 – Non-Calendar Transition Relief for large employers (ALE) will expire starting January 1, 2017 and all ALE’s will be required to offer compliant coverage at the beginning of the new year.
Reporting on the Form W-2
The value of the health care coverage will be reported in Box 12 of the Form W-2, with Code DD to identify the amount. There is no reporting on the Form W-3 of the total of these amounts for all the employer’s employees.
In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee. See the chart, below, and the questions and answers for more information.
An employer is not required to issue a Form W-2 solely to report the value of the health care coverage for retirees or other employees or former employees to whom the employer would not otherwise provide a Form W-2.
The chart below illustrates the types of coverage that employers must report on the Form W-2. Certain items are listed as “optional” based on transition relief provided by Notice 2012-9 (restating and clarifying Notice 2011-28). Future guidance may revise reporting requirements but will not be applicable until the tax year beginning at least six months after the date of issuance of such guidance.
The chart reviews the reporting requirements for Box 12, Code DD, and has no impact on requirements to report these items elsewhere. For example, while contributions to Health Savings Arrangements (HSA) are not to be reported in Box 12, Code DD, certain HSA contributions are reported in Box 12, Code W (see General Instructions for Forms W-2 and W-3).