The IRS noted that "to prepare for the reporting requirements in 2016, applicable large employers should be tracking information each month of 2015, including:

(a) Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable, and;

(b) Whether your employees enrolled in the self-insured minimum essential coverage you offered."

Compliance with these rules is mandatory.  Failure to file the required informational returns (or filing incomplete or inaccurate forms) could result in both reporting penalties and penalties under the ACA's shared responsibility provisions (the so-called pay or play mandate).

What needs to be reported?

Forms 1094-C and 1095-C:

Large employers will be required to prepare Forms 1094-C and 1095-C for each of its full-time employees, regardless of whether they offer a fully insured health plan, a self-funded health plan, or both.  If a large employer offers only a fully insured health plan, it must complete only parts I and II of Form 1095-C for each of its full-time employees, while the insurance company will be required to prepare separate Forms 1095-B to report coverage for those same full-time employees.  However, if the large employer offers employer-sponsored self-insured health coverage in which the employee or other individual actually enrolls, that large employer must complete parts I, II, and III of the Form 1095-C. Form 1094-C is the transmittal form to the IRS for the Forms 1095-C.

The information needed to complete these forms includes whether the employee and dependents were offered coverage, the cost of coverage, and identifying information not only for the employee, but also for his or her dependents. The information must be captured and reported for each month of the calendar year.

Filing and Distribution Deadlines:

Forms 1095-C or 1095-B must be distributed to employees by February 1, 2016. However, employers should take steps now to ensure that they will be able to timely comply with the new reporting requirements. 

For more information on your reporting requirements call the LaBonte Law Group at 516-280-8580.  

Should you have any questions or need advice on anything related to the dealership please do not hesitate to give me a call or send me an e-mail.  Your questions will be answered promptly!!!