From the California Restaurant Association:
New information-reporting rules for many businesses and their insurers are on their way under the Affordable Care Act -- and with less than 10 months to go before data-tracking is supposed to get underway, the impact on affected businesses could be overwhelming, the National Restaurant Association said today.
The IRS today issued final regulations spelling out Sections 6056 and 6055 of the Internal Revenue Code. These new provisions are part of the ACA, and will require many employers to turn over significant data to the IRS and to employees starting in early 2016. Data-tracking must begin Jan. 1, 2015.
The rules are aimed at helping the IRS enforce the health care law’s employer and individual mandates, including allowing the agency to calculate and assess monthly penalties against large employers who fail to offer qualifying health care coverage to full-time employees. Federal and state agencies will also use the Section 6056/6055 data to determine which individuals are eligible for federal tax help to buy health care plans on exchanges.
Employers have been waiting for the final rules for months. As a leader of the Employers for Flexibility in Health Care (E-FLEX) Coalition, the National Restaurant Association last year asked the IRS to give employers maximum flexibility in how they report data.
The final regulations offer some options aimed at streamlining the process for employers, but the requirements still appear daunting. To simplify, the IRS said it’s offering a form to allow employers and their insurers to provide Section 6056/6055 information on the same consolidated form. The IRS also said in limited cases – where employers offer qualifying health plans to full-time employees at a cost that falls below 9.5 percent of the federal poverty level, or about $1,100 a year – employers may qualify for simplified reporting.Reporting rules at a glance
- What the rules require: Section 6056 requires covered employers to certify that they’ve offered “minimum essential coverage” to full-time employees. Among other information, the 6056 reports will generally require data on the number of full-time employees each month and the months during which employees were offered coverage. Section 6055 requires insurers and self-insured employers to file data about health care coverage.
- Who’s covered: The ACA’s Section 6056 reporting rules apply to businesses that employ 50 or more “full-time-equivalent” employees. The Section 6055 reports must be filed by any entity that offers a health plan, such as self-insured employers, health insurers and others.
- When the reporting rules take effect: The first 6055/6056 returns will be due in early 2016, based on data tracked in 2015. Statements must be filed with employees by Jan. 31, 2016, and returns must be filed with the IRS by the end of February (for paper filers) or end of March (if filed electronically).
GO-Biz to Host Workshop on How Businesses Can Apply for the ‘California Competes’ Tax Credit
The Governor's Office of Business and Economic Development (GO-Biz) is hosting a workshop on the new California Competes Tax Credit.
Small, medium and large businesses are encouraged to attend the workshop and receive instruction on how to apply for this new tax credit program available from the State.
The California Competes Program provides upwards of $180 million in tax credits over the next two years for businesses of all sizes that want to expand or relocate to California.
Come and learn how your business can apply for millions in available new tax credits.
The workshop and the program are both free and available to businesses of all sizes.
Los Angeles Workshop:
Tuesday March 25
1:30pm to 2:30pm