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

e-Help Desk Hours

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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