IRS: 6055 and 6056 Reporting

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On March 10, 2014, the U.S. Department of the Treasury and IRS published final rules to implement the information reporting provisions certain employers under the Affordable Care Act (ACA) that take effect in 2015.

Section 6056 reporting is the required reporting to the IRS of information relating to offers of health insurance coverage by employers that sponsor group health plans. A statement disclosing information about the offer of coverage must also be furnished to full-time employees.

Applicable Large Employers (ALE)
What is an ALE?
An ALE is one who employs 50 or more full-time employees or full-time equivalents.

What is the definition of a full-time employee?
Full-time employees are those who work at least 30 hours per week. An employer must also count full-time equivalents (FTE) by averaging hours worked by employees, including part-time and seasonal employees. For example, two 15-hour-per-week employees equal one full-time equivalent, since decimals are taken into consideration.

What information needs to be reported to the IRS?
Health Section 6056 reporting return must show the following:

  • Name, address and employer identification number (EIN) of the ALE
  • Name and telephone number of a contact person
  • Calendar year for which the information is reported
  • Certification as to whether the ALE offered full-time employees (and dependents) the opportunity to enroll in MEC under a plan by calendar month
  • The months during which coverage was available
  • Each full-time employee’s share of the lowest cost monthly premium (self-only) for coverage providing minimum value offered under a plan, by calendar month
  • Number of full-time employees for each month during the calendar year
  • Name, address, Social Security number (SSN) of each full-time employee during the calendar year and the months, if any, during which the employee was covered under the plan
  • Any other information that may be specified

What information needs to be furnished to employees?
Statements required to be furnished to full-time employees must show the name, address and EIN of the ALE, and all of the information summarized above that is reported to the IRS with respect to the full-time employee

UPDATE: Penalty amounts have increased as of June 29, 2015.  The timeline below is still correct but click this link for the updated penalty amounts:

Penalty Increase for 6055 and 6056 Filing dealines

1094 and 1095 Filing Deadlines

6055 and 6056 Reporting Requirements