The forms for 1094 and 1095 healthcare reporting are available online from the Internal Revenue Service website.
As a refresher:
The Internal Revenue Service has the forms available online, along with instructions to help employers complete the forms.
Form 1094-C: https://www.irs.gov/pub/irs-pdf/f1094c.pdf
Form 1095-C: https://www.irs.gov/pub/irs-pdf/f1095c.pdf
Instructions for completing Forms 1094-C and 1095-C: https://www.irs.gov/pub/irs-pdf/i109495c.pdf
Keep in mind that the links above are for reports due for plan year 2015. Each year the IRS may adjust these forms and update them, so be sure you are using the form for the correct tax year.
For questions on how to find plan information or plan reports to complete these documents, check with your Benefit Advisor or your Third Party Administrator.
Section 6055 requires health insurers and sponsors of self-insured plans to report on Minimum Essential Coverage (MEC) to the IRS annually. The reporting to both individuals and the IRS for 2015 is due in early 2016. It also requires insurers and self-insured plans to report to their MEC recipients, so the individuals can report that coverage when filing their federal taxes.
The 6055 reporting requirement has two goals:
Entities subject to 6055 reporting are health insurance issuers, sponsors of self-insured plans, government sponsored programs, such as Medicaid, and providers of other arrangements designated as MEC, such as high-risk pools.
The final rule states that self-insured employers are responsible for reporting this information to the IRS. Health insurers will provide reporting to the IRS for fully insured groups. If a self-funded employer needs information on covered members and their coverage dates for a calendar year to meet their part of their reporting obligation, a report of covered individuals may be available from the Third Party Administrator.
Information required to be reported to the IRS by health insurers and sponsors of self-insured plans who provide minimum essential coverage:
On July 30, the Department of the Treasury and the Internal Revenue Service (IRS) issued a second notice regarding the 40% Excise Tax a.k.a. the Cadillac Tax. The notice provides information on possible approaches that are being considered for administering the Cadillac Tax and continues the process of gathering input that will be used to develop regulations.
This is a follow-up to the notice issued on February 23, 2015, and comments may be submitted until October 1, 2015.
The notice addresses several issues, including:
Who Pays the Tax
Each “coverage provider” must pay the tax on its share of the excess benefit. A coverage provider is:
How the Tax will be Determined
The notice seeks comments on how to calculate and administer the tax. The following are some of the proposed approaches:
Many employers provide employees with employer-paid group-term life insurance benefits or arrange for employees to purchase group term life insurance benefits. But did you know that in some cases, if an employer pays for more than a $50,000 life insurance benefit, there can be tax implications for the employee?
Must the cost of employer-provided group-term life insurance be included in an employee’s gross income?
Pursuant to Internal Revenue Code (Code) Section 79, an employee may exclude up to $50,000 of employer- provided group-term life insurance from his or her income. This tax exclusion applies only to insurance on the life of the employee. It does not apply to insurance on the life of the employee’s spouse or dependent or other individual.
In addition, the employer may generally deduct the premiums it pays for the coverage as an ordinary and necessary business expense, so long as the employer is neither directly nor indirectly the beneficiary under the policy.
May the employer provide group-term life insurance for its employees in excess of $50,000?
Yes. However, the “cost” of the coverage in excess of $50,000 must be included in the employee’s gross income. “Cost” as used here does not refer to the premium paid by the employer but to the cost determined under the Uniform Premium Table contained in IRS regulations. The “cost” of the coverage added to an employee’s gross income is commonly referred to as “imputed income”.