Employee Health Cover Forms….

In Accounting & Finances, Business, Human Resources, Insurance & Liability, Taxes on December 2, 2014 by Sufen Wang

untitledAn Apple a Day Sure Doesn’t Keep Paperwork Away: IRS Releases Draft Employee Health Coverage Forms
With health care, comes a huge stack of forms to fill out – generally when you’re not feeling too well in a waiting room surrounded by folks who aren’t lookin’ too good either. Unfortunately, the IRS is adding to the paper stack with draft versions of Form 1094–B, Form 1095-B, Form 1094-C, and Form 1095-C.
First Aid KitAlthough these forms for reporting employee health coverage don’t have to be filled out in the ER lobby, employers will have to spend time completing several of them – which will take precious time away from business operations. And these forms arrive on the coat-tails of the already in-effect requirement for employers to report the cost of health insurance on Form W-2.
inoutWhere did this lovely paperwork come from? The Affordable Care Act requires that employee health plans meet certain requirements, with the reporting rules set by tax code sections 6055 and 6056. Down the road, employers with 50 or more full-time / full-time equivalent employees will be penalized if they don’t offer health coverage which meets minimum value and affordability standards. goodgriefTo prove that everything is A-okay, employers will have the pleasure of filling out Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. Health insurance companies get to fill out Form 1094–B, Transmittal of Health Coverage Information Returns, and Form 1095-B, Health Coverage. 
Stress-test-cartoonIf it sounds confusing, it’s because it still is. Keep in mind that these are draft forms, with no instructions available yet. According to the IRS, “In accordance with the IRS’ normal process, these draft forms are being provided to help stakeholders, including employers, tax professionals and software providers, prepare for these new reporting provisions and to invite comments from them. The draft instructions relating to the forms were posted to in September. Both the forms and instructions will be finalized by the end of this year.” All this means that the paperwork still needs work in 2014, and thus reporting is voluntary, but there’s no avoiding it when it’s set in stone in 2015. 
Sufen Wang, M.S.Accountancy
Wang Solutions, Long Beach, CA (562) 856-0793
Editor: Hannah Huff, M.F.A. Creative Writing: Poetry, (626) 806-5805

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