CHARLOTTE, N.C., Jan. 28, 2015 /PRNewswire/ -- Sections 6055 and 6056 of the Internal Revenue Code (IRC) requires reporting for applicable large employers (ALE) and non-ALEs with self-funded plans, creating additional Affordable Care Act (ACA) requirements and challenging employers to be in compliance. Although the four required forms are currently in draft form by the IRS and are not final, employers should have begun collecting data on January 1, 2015.
Section 6055 enforces the individual mandate and applies to employers with self-funded plans (partial or full) and to all insurers. Even small self-funded employers must identify all covered employees, spouses and dependents, providing form 1095-B to employees and submitting form 1095-B to the IRS with the 1094-B transmittal.
Section 6056 applies to all applicable large employers with 50 or more full-time employees and enforces the employer mandate. Forms 1094-C and 1095-C are used to identify all ACA defined full-time employees, spouses and dependents that were offered coverage. Form 1094-C must be submitted to the IRS while form 1095-C is provided to employees.
"Although final forms are not provided to employees and the IRS until 2016, its imperative for employers to already be acquiring the necessary data to fulfill this ACA requirement," said Karen Kirkpatrick, Infinisource Senior Compliance Advisor. "It's also helpful for this data to be captured and auditable through a comprehensive platform such as iSolved that will provide required reporting."
Determined by employer size, the first tax forms, either 1095-B or 1095-C, are due to the employee by January 31, 2016. Forms 1095-B (with 1094-B) or 1094-C are due to the IRS by February 28, 2016, or March 31, 2016, if filed electronically. Large employers with a self-funded health plan will file one consolidated report.
iSolved is an inclusive human capital management system that will house an employer's workforce data that will meet the new reporting requirements. Data such as total employees, total full-time employees, minimum essential coverage offers and affordability will all be required to be accurately tracked and reported on. Using human capital management technology helps alleviate compliance issues and potential penalties.
Visit www.infinisource.com to learn more about how iSolved HCM technology is transforming the way organizations manage their most important asset — their people.
About Infinisource, Inc.
Founded in 1986, Infinisource is a nationally recognized leader of SaaS-based Human Capital Management technology solutions and expert services. Infinisource offers iSolved (a single platform for HR, Payroll, Time and Attendance and Benefits Enrollment) as well as administration for COBRA, Flexible Spending Accounts, Health Savings Accounts and Health Reimbursement Arrangements. With more than 4,000 broker relationships and 63,000 employer customers, Infinisource delivers transformational human capital management technology.
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SOURCE Infinisource
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