Q: Do I need to do ACA reporting for 2022? If so, what am I required to file, and when do the forms need to be completed?
A: Section 6055 and 6056 reporting are still required, despite the fact that the individual mandate penalty has been reduced to $0.
Section 6056 reporting is required for all applicable “large” employers (ALE), which the ACA defines as having 50 or more full-time equivalent employees (FTEs) during the prior calendar year. This includes employers who are part of a controlled group who combined have 50 or more FTEs. Additionally, employers with fewer than 50 employees whose medical coverage is self-funded, level-funded, or ICHRA plans have a reporting requirement.
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 employer size. If you have an HRA with a fully insured plan, you do not need to do the reporting for Section 6055.
All ALEs are required to file forms 1094-C and 1095-C. These forms fulfill the employer’s 6055 and 6056 reporting requirements. The forms did not change from last year. An ALE with a self-insured plan or an ICHRA is required to complete Section III of Form 1095 to satisfy Section 6055 reporting.
Small employers who offer a self-insured plan, level-funded plan, or IHCRA are required to file forms 1094-B and 1095-B, as stated in the 2022 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 2022 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 March 2, 2023. Forms are due to the I.R.S. by February 28, 2023, if filing by paper, or March 31, 2023, if filing electronically. Reporting entities are generally encouraged to furnish statements to individuals as soon as they are able.