What are the Large Business Reporting Requirements?
We are trying to understand the reporting requirements for ACA compliance. Our company offers health coverage to all employees including their dependents. The company pays half the premium for which ever coverage the employee elects, whether they elect single or family coverage.
The question that we have in the collection of information on the benefit amount, are we to report only single coverage premium they would be responsible for even if they elected family coverage? How do we report or do we have to report if they decline the coverage offered to them?
Also, another question we have is about the coverage codes, we have located information which indicates the definitions of 1a, 1b, 1c, and 1d, but our software has more categories listed up to 1l. Are there more codes?
Also, we need to know about the safe harbor. What does that mean? Do we qualify? and there are codes in our software that have no definitions, and we have been unable to locate those codes that correspond in the reporting.
We are looking forward to further clarification.
Answer
Below we will discuss safe harbors and reporting requirements for employee health coverage under the Affordable Care Act.
Safe Harbors: These are tricks employers can use to make sure they comply with laws. Counting employee only income to make sure coverage costs no more than 9.5% of household income for instance.
Reporting requirements:
- You must withhold and report an additional 0.9 percent on employee wages or compensation that exceed $200,000. Learn more.
- You may be required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.
- Effective for calendar year 2015, you must file an annual return reporting whether and what health insurance you offered your employees. This rule is optional for 2014. Learn more.
- Effective for calendar year 2015, if you provide self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover.This rule is optional for 2014. Learn more.
Above are the best places to look for this information. See rules for W-2 and W-3 for more information.
Generally you are reporting the cost of the whole health plan. We have included IRS help numbers, as they are honestly more qualified to jump into the nitty gritty of large employer responsibilities.
IRS Telephone Lines and Hours of Operation
|
Service |
Telephone number |
Hours of operation |
|
IRS Tax Help Line for Individuals |
(800) 829-1040 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
Business and Specialty Tax Line |
(800) 829-4933 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
Practitioner Priority Service (Practitioners Only) |
(866) 860-4259 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
e-Help (Practitioners Only) |
(866) 255-0654 |
|
|
Refund Hotline |
(800) 829-1954 |
Automated service is available 24/7 |
|
Forms and Publications |
(800) 829-3676 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
National Taxpayer Advocate Help Line |
(877) 777-4778 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
Telephone Device for the Deaf (TDD): Forms, Tax Help, TAS |
(800) 829-4059 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
Electronic Federal Tax Payment System |
(800) 555-4477 |
24/7 |
|
Tax Exempt and Government Entities (TEGE) Help Line |
(877) 829-5500 |
M–F, 8:00 a.m.–5:00 p.m., local time |
|
TeleTax Topics and Refund Status |
(800) 829-4477 |
24/7 |
|
Forms 706 and 709 Help Line |
(866) 699-4083 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
Employer Identification Number (EIN) |
(800) 829-4933 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
Excise Tax and Form 2290 Help Line |
(866) 699-4096 |
M–F, 8:00 a.m.–6:00 p.m., ET |
|
Information Return Reporting |
(866) 455-7438 |
M–F, 8:30 a.m.–4:30 p.m., ET |
|
Disaster or Combat Zone Special Hotline |
(866) 562-5227 |
M–F, 7:00 a.m.–7:00 p.m., local time |
|
FBAR and Title 31 Help Line |
(866) 270-0733 (313) 234-6146 (not toll free) |
M–F, 8:00 a.m.–4:30 p.m., ET |
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I started my business in 2019, I have a subchapter S status and am NOT a large employer for health insurance purposes. What are the reporting requirements? I track and compute the number of full time and fte employees every month as part of my financial close processes but I want to make sure that I do not have to report anything to the IRS or on form 1120S that I am not a large employer? If we are not a large employer, do I need to file anything with the IRS or employees?
If you don’t have over 50 FTE then you don’t have reporting requirements in terms of the ACA. If you are offering health benefits however you may still have reporting requirements in terms of offering health insurance. You should be able to inquire about this through the firm providing your group health plan though.