Employers with 50 or more full-time employees (FTEs) and all employers that sponsor self-insured (including level-funded) group health plans are required to report information to the IRS about the health coverage provided during the prior calendar year. The reporting requirement assists the federal government in enforcing the ACA employer shared responsibility provisions, commonly referred to as the employer mandate. The reporting also ensures proper administration of the premium tax credit and cost-sharing subsidy eligibility and payments through both the federally facilitated and state-run health insurance exchanges.
In addition, employers are required to provide employees with annual statements that summarize the employer’s report to the IRS. These statements help employees determine their eligibility for a premium tax credit and, prior to 2019, their compliance with the ACA individual mandate.
View the full publication.