Q: Do I need to do ACA reporting for 2021? If so, what am I required to file and when do the forms need to be completed?
A: Section 6056 reporting is required for all applicable “large” employers (ALE), which the ACA defines as having 50 or more full-time equivalent employees during the prior calendar year. This also includes employers who are part of a controlled group.
Section 6055 reporting is required for all employers who offer a self-insured health plan, level funded or an Individual Coverage Health Reimbursement Account (ICHRA) regardless of the employer size. If you have an HRA with a fully insured plan, you do not need to do the reporting for Section 6055. Section 6055 reporting is still required, despite the fact that the individual mandate penalty has been reduced to $0.
All ALE’s are required to file forms 1094-C and 1095-C. These forms fulfill the employers 6056 reporting as well as the 6055 reporting requirement. The forms did not change from last year. The 2021 Instructions for Forms 1094-C and 1095-C states that if new codes were added for employers that offer individual coverage HRAs.
Small employers who offer a self-insured plan, level-funded plan, or IHCRA Employers are required to file forms 1094-B and 1095-B. As stated in the2021 Instructions for Forms 1094-B and 1095-B. An employer is not required to distribute the forms to the covered employees as long as the employer prominently posts a notice on its website stating that responsible individuals may receive a copy of their 2021 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity. Employers are still required to furnish the forms to the Internal Revenue Service.
The due date for furnishing Form 1095-B to individuals is extended from January 31, 2022, to March 2, 2022 as noted in the instruction. Forms are due to the I.R.S. by February 28, 2022 if filing by paper or March 31, 2022 if filing electronically. Reporting entities are generally encouraged to furnish statements to individuals as soon as they are able.