Pub. 14 2015-2016 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 31 new jersey auto retailer W W W . N J C A R . O R G REPORTING REQUIREMENTS  continued on page 32 Prepare Now for Affordable Care Act Reporting Requirements The Patient Protection and Affordable Care Act (ACA) continues to fight its way to the top of the busy employer’s ever-growing “to do” list. As all employers are aware, the ACA’s employer mandate took effect January 1, 2015. The employer mandate requires large employers to either offer affordable, adequate health insurance coverage to, substantially, all of their full-time workforce, or pay a potential penalty if a full-time (30 hours or more per week) employee goes to the public health insurance marketplace and receives a tax subsidy. In 2015, employers need only offer coverage to 70%of their full-time workforce tomeet theACA’s “substantiallyall” requirement. Because of this transition relief, some employers may have postponed a hard look at ACA compliance. However, even employers that know they can easily achieve a 70% offer of coverage for 2015 may be caught off guard when the ACA’s extensive information reporting and disclosure requirements go into effect in 2016. In early 2016, employersmust report to the Internal Revenue Service (IRS) (anddisclose to their employees) detaileddata about their health benefit offerings for the 2015 calendar year. Because of the scope and detail of the information required, employers need to plan ahead in order to collect and organize the appropriate data. Minimum Essential Coverage Reporting Internal RevenueCode (IRC) Section 6055 requires insurers, includ- ing employers that sponsor self-insured plans, to report information on all individuals enrolled in the plan (regardless of their status as a full-time employee under the ACA definition of 30 hours per week), including dependents. Every provider of minimum essential cover- age must report this coverage information by furnishing a statement to the covered individuals AND filing an information return with BY KELLI PERSONETTE