Small Business Taxes & Management

Special Report

Mandatory Employer and Insurer Reporting Requirements Under ACA Delayed One Year


Small Business Taxes & ManagementTM--Copyright 2013, A/N Group, Inc.


As you may have already heard, the Obama Administration has announced that it will provide an additional year before the Affordable Care Act (ACA) mandatory employer and insurer reporting requirements begin. According to a Treasury release, the delay will allow the Administration to consider ways to simplify the new reporting requirements consistent with the law. Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.

The Treasury Department also announced that within the next week, it will publish formal guidance describing the transition. The release went on to say that the Treasury was working hard to adapt and to be flexible about reporting requirements as it implements the law.

The ACA includes information reporting (under Section 6055) by insurers, self-insuring employers, and other parties that provide health coverage. It also requires information reporting (under Section 6056) by certain employers with respect to the health coverage offered to their full-time employees. The Treasury expects to publish proposed rules implementing these provisions this summer, after a dialogue with stakeholders--including those responsible employers that already provide their full-time work force with coverage far exceeding the minimum employer shared responsibility requirements--in an effort to minimize the reporting, consistent with effective implementation of the law.

The Treasury is encouraging employers, insurers, and other reporting entities to voluntarily implement this information reporting in 2014, in preparation for the full application of the provisions in 2015. Real-world testing of reporting systems in 2014 will contribute to a smoother transition to full implementation in 2015.

The Treasury recognizes that this transition relief will make it impractical to determine which employers owe shared responsibility payments (under Section 4980H) for 2014. Accordingly, the Treasury is extending this transition relief to the employer shared responsibility payments. These payments will not apply for 2014. Any employer shared responsibility payments will not apply until 2015.

The Treasury also said that the delay in the requirement for large employers to provide health insurance does not affect employees' access to the premium tax credits available under the ACA (nor any other provision of the ACA).


Copyright 2013 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles in this publication are not intended to be used, and cannot be used, for the purpose of avoiding accuracy-related penalties that may be imposed on a taxpayer. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 07/03/13