Employee Benefit Plan and Tax Implications of the Patient - - PowerPoint PPT Presentation

Employee Benefit Plan and Tax Implications of the Patient Protection and Affordable Care Act

Gregory J. Viviani

Health Care Reform

• Patient Protection and Affordable Care Act

(P.L. 111-148, March 23, 2010)

• Health Care and Education Reconciliation Act of 2010

(P.L. 111-152, March 30, 2010)

• Final Regulations issued under Code Section 4980H (the

employer mandate tax on February 12, 2014.

2

Provisions Effective First Plan Year After September 23, 2010

• No Lifetime or Annual

Dollar Limits

• No Pre-Existing

Conditions

• Extension of Dependent

Coverage to age 26

• Required Preventive Care
• Patient Protections
• Rescission
• Nondiscrimination Rules
• Group Health Plan

Reporting Requirements

• Appeals Process

3

Provisions Effective in 2012

• Medical Loss Ratio refunds – law effective in 2011. Refunds

payable August 1, 2012

• Issuance of Summary of Benefits and Coverage (SBC)

Effective for open enrollment periods that begin on and after

September 23, 2012.

Otherwise effective for plan years that begin after

September 23, 2012

• 2012 W-2 Reporting (large employers)
• Modified Preventive Care rules for contraceptives – first plan

year after August 1, 2012

• Plan Fees – 2012

4

Provisions Effective in 2013

• Flexible Spending Account limit ($2,500) – 2013 calendar year
• Certain employee taxes – 2013
• Required Notice of Exchanges (October 1, 2013)

5

Provisions Effective in 2014 Plan Year

• Limitations on Waiting Periods
• Expansions of Prohibited Discrimination Based on Health Status

and New Wellness Plan Rules

• No Discrimination Against Health Care Providers
• Limitations on out of pocket cost sharing

Single coverage - $6,350 Family coverage - $12,700

• Reinsurance Fees

6

Provisions Effective in 2015 and 2016

Employer Mandate tax and Related Reporting requirements

• Generally delayed until 2015
• Delayed until 2016 for certain small employers

Less than 100 Full Time Equivalent Employees in 2014 No workforce reduction in 2014 with the intention of meeting this test Health coverage offered as of February 9, 2014 must not be eliminated or materially reduced through December 31, 2015 Delay is through 2015 Plan Year if non-calendar year plan as of February 9, 2014

7

Other Effective Dates

• Auto enrollment (effective date deferred until after 2014)

8

Fees for Exchange Reinsurance Program

• Applies for the 2014, 2015 and 2016 Plan Years
• Applies to Self-Insured Plans and Insured Contracts.
• Paid Annually - $63.00 Per Covered Life in 2014
• The term covered life will include every person covered by the

plan, including COBRA people. Retirees and Medicare Beneficiaries are also included, unless they have Medicare as the primary payor of their benefits.

• The Reinsurance does not benefit the Plan that is paying the
• fee. It will be used to reinsure insurers who will be providing

coverage through the Exchanges.

• To pay the Reinsurance Fee, by November 15 of the relevant

year, the self-insured plan has to file a report with HHS that will show the number of covered lives through three quarters of the year.

• The self-insured plan is ultimately responsible for paying the
• fee. However, HHS will allow a third party administrator to do

so for the plan.

9

Maximum Waiting Periods

• Effective in 2014
• Maximum waiting period is 90 days
• Final Regulations issued February 24, 2014

Waiting period limit only starts to run after an employee moves

into a job classification that is eligible for coverage.

Full-time and part-time employee classification are permitted

for this purpose

If employee hours vary, an averaging period can be used in

accordance with the employer mandate tax rules. But the total time period before eligibility cannot exceed 13 months

10

Cost Sharing Limits

• Applicable in 2014
• Maximum out of pocket limit is based on all deductibles, co-pays,

co-insurance and similar charges

• 2014 Limitations on out of pocket cost sharing

Single coverage - $6,350 Family coverage - $12,700

• Applies only to in network services.

11

Auto Enrollment

• Law applies to all employers subject to the Fair Labor Standards

Act (FLSA) who have 200 or more full-time employees. Regulations are to address the meaning of “full-time employee”. It is unclear what standard will apply. PPACA uses an average workweek of 30 hours. It also is unclear whether the 200 full-time employee requirement might be based on FTEs

• Auto enrollment will only be required after the DOL issues

regulations.

• DOL has said that regulations will not be issued in time for a

2014 compliance date. No timetable for regulations has been set.

12

Auto Enrollment

• Once the law applies, it will require auto enrollment for “new full-

time employees”.

• Continued enrollment for “current employees” will also be
• required. This might not be limited to full-time employees.
• Employees must get notice of the auto enrollment and have an
• pportunity to opt out.
• Full-time employee status is not clear. Anticipate that it will be

tied in with the 30 hour average workweek under the PPACA (see discussion below).

13

Auto Enrollment

• For employee payroll deductions, in general, plans subject to

ERISA are not required to comply with state laws pertaining to payroll deductions.

• If the plan is not subject to ERISA (e.g. a governmental plan or

church plan), state law will apply, except to the extent necessary to implement the auto enrollment.

14

Employer Mandate Tax – Overview

Generally applies in 2015 to employers with 50 or more FTEs (2016 for certain employers with less than 100 FTEs). Two ways to be taxed

• Tier 1

Employer does not offer a plan that has “minimum essential coverage” to all employees and their dependents

Annual tax of $2,000 for each Full-Time Employee in

excess of 30 Full-Time Employees. Tier 2 Employer does offer a medical plan that has “minimum essential coverage” to all employees and their dependents– potential annual tax of $3,000, but only for certain Full-Time Employees s who elect to buy coverage under an Exchange. Note: Taxes are actually calculated each month. Monthly tax amounts are $166.67 and $250.00.

15

Employee Determinations

Employee status will be determined under common law rules – the employer of a worker is the person who has the right to direct and control the rendition of the services.

• The real life facts and circumstances pertaining to control will

determine who is the employer.

• Under this standard, an employee leasing agency or

“professional employer organization” (PEO) might not be considered the employer.

• Partners in partnerships, directors and 2% shareholders in S

Corporations are not considered to be employees.

• In general, expatriate employees will not have to be considered

16

Special Rules for PEOs and Staffing Firms

• Applies if the worker is the common law employee of the client

employer

• Coverage under the staffing firm plan will count as coverage
• ffered by the client only if the client has to pay a higher fee to the

staffing firm on account of the employee’s enrollment in the staffing firm health plan

17

Employer Mandate Tax - Applicable Large Employers

Applicable Large Employer Test.

• Determined on a calendar year basis
• Average of 50 full-time employees on business days in the

preceding calendar year. Controlled Group Rules. Apply solely for purposes of counting to 50 full-time employees. Code Section 414(b), (c), (m) and (o). This aggregates all employees within a controlled group

• f corporations or trades or businesses under common

control. Employees working outside of the U.S. are not counted. Thus, small U.S. operations of foreign companies may be exempt.

18

Employer Mandate Tax- Applicable Large Employers

• Predecessor Employers. Rules will require counting the

employees of predecessor employers.

• New Employers. If employer not in existence for all of the

preceding calendar year, base it on reasonable expectations for the current year.

19

Employer Mandate Tax - Applicable Large Employers

Calculating 50 Full-Time Employee Equivalents (FTEs)

• Note: this is the method for determining if the employer

has less than 100 employees and is exempt for 2015. Count all full-time employees. Then add in part-time employees as FTEs. Part-time employees are credited as fractions of FTEs.

Calculations are done monthly. An employee is full-time for a month if the employee has 130

• r more hours.

For all part-time employees, add their total hours for the month

and divide by 120. The result is the FTE equivalent that is to be added in to the full-time employee total for that month.

For employees whose hours are not counted, use 8 hours per

day worked or 40 hours per week worked.

20

Employer Mandate Tax- Applicable Large Employers

• Once the FTE total is determined for each month in the

prior calendar year, add all months together, and divide by 12.

If the result is 50 or more, the employer is an Applicable Large

Employer for the current year.

It If the result is less than 50, the employer is NOT an

Applicable Large Employer for the current year.

21

Employer Mandate Tax- Applicable Large Employers

Seasonal Worker Exception (IRS Proposal).

• Employer’s workforce is over 50 FTEs for not more than 120

days in the preceding calendar year (including seasonal employees) Can use four calendar months instead of 120 days Days and months need not be consecutive

• All employees in excess of 50 during that time were “seasonal

workers”.

Seasonal relates to the nature of the work throughout the year Holiday retail workers are seasonal Reasonable good faith interpretations

22

Determination and Imposition of the Tax

• The tax will be applied separately to each member of a

controlled group of companies. However, there is no liability of other controlled group members for non- payment of the tax.

• The tax will be applied to employers that otherwise are

disregarded entities for tax purposes.

23

Full-Time Employee Determinations

The tax only applies with respect to employees who are “full- time employees”.

• A full-time employee is one who averages 30 hours or more per

week.

• This requirement is separate from the “FTE” calculation that is

done to determine “Applicable Large Employer” status.

24

Full-Time Employee Determinations Two Options

• Monthly Measurement Method

Measure in real time each month

• Look-Back Measurement Method

The employer looks back to a previous “Standard Measurement Period” to determine hours of service and Full-Time Employee status.

The result (full-time or not full-time) is applied going forward for

a “Stability Period”.

• Detailed Discussion is provided below.

25

Employer Mandate Tax – Tier 1 No Plan Offered

Potential annual tax is $2,000 for each Full-Time Employee in excess of 30.

• To avoid the tax, the must offer a medical plan that provides

minimum essential coverage (MEC) to all Full-Time Employees and their dependents. This provision of the law will be satisfied if coverage is offered to 95% of the full-time employees. For 2015, the percentage is reduced to 70%.

• The 30 employee exemption is split among the members of a

controlled group of corporations or other organizations, based on their Full-Time Employee counts. For 2015, the exemption number is raised to be the first 80 employees

• “Grandfathered Plans” are subject to the tax. They may avoid

the tax only if they have minimum essential coverage.

26

Employer Mandate Tax – Tier 1 No Plan Offered

Dependent Issues

• The term dependent only includes an employee's children

under age 26.

Biological children Adopted children and children placed for adoption

• Coverage does not have to be offered to step-children or

foster children

• Coverage does not have to be offered to spouses
• Special rules apply for children who are not U.S. citizens
• r U.S. nationals. They must reside in the U.S. or a

contiguous country.

27

Employer Mandate Tax – Tier 1 No Plan Offered

Minimum Essential Coverage

• Generally, a comprehensive set of medical benefits
• Includes prescription drug coverage
• Does not include dental or vision coverage

28

Employer Mandate Tax – Tier 2 No Plan Offered

$3,000 annual tax for certain employees who opt out of the employer plan and buy coverage through the Exchange. Calculated monthly - $250.00 per month.

• The employee must be a Full-Time Employee
• Based on the employee’s household, the employee’s household

income must be over 100% of the poverty line (now 138% in certain states) and not over 400% of the poverty line

• It is only the employee’s coverage that is examined for the

second tier tax. The tax is not triggered if dependents are covered under an Exchange or under a spouse’s plan.

29

Employer Mandate Tax – Tier 2 No Plan Offered

2014 Poverty Line

• Family Baseline
• Size

Amount 400% Limit

• 1

$ 11,670 $ 46,720

• 2

$ 15,730 $ 62,920

• 3

$ 19,790 $ 79,160

• 4

$ 23,850 $ 95,400

• 5

$ 27,910 $111,640

• 6

$ 31,970 $123,880

• 7

$ 36,030 $127,880

• 8

$ 40,090 $160,360

30

Employer Mandate Tax – Tier 2 Plan Offered

2014 Poverty Line

• Family Baseline
• Size

Amount 400% Limit

• 1

$ 11,170 $ 44,680

• 2

$ 15,130 $ 60,520

• 3

$ 19,090 $ 76,360

• 4

$ 23,050 $ 92,200

• 5

$ 27,010 $108,040

• 6

$ 30,970 $123,880

• 7

$ 34,930 $139,720

• 8

$ 38,890 $155,560

Squire Sanders (US) LLP / www.squiresanders.com

31

Employer Mandate Tax – Tier 2 Plan Offered

• 2014 Poverty Line – Medicaid Expansion States
• Family Baseline

Expansion Sate

• Size

Amount 133% Limit

• 1

$ 11,670 $ 15,521

• 2

$ 15,730 $ 20,921

• 3

$ 19,790 $ 26,321

• 4

$ 23,850 $ 31,721

• 5

$ 27,910 $ 37,120

• 6

$ 31,970 $ 42,520

• 7

$ 36,030 $ 47,920

• 8

$ 40,090 $ 53,320

32

Employer Mandate Tax – Tier 2 Plan Offered

Safe Harbor Plan Design to avoid the tax

• The Employer plan pays 60% of the plan costs

The “minimum value” requirement

• The employee is not charged more than 9.5% of the employee’s

household income for the coverage. The “affordability” requirement.

Squire Sanders (US) LLP / www.squiresanders.com

33

Employer Mandate Tax – Tier 2 Plan Offered

Three Safe Harbor methods for Affordability

The amount being charged to the employee does not exceed 9.5% based on either:

• W-2 wages
• Standard Rate of Pay
• Poverty Line

34

Employer Mandate Tax – Tier 2 Plan Offered

Affordability Safe Harbor – W-2 Wages

• Cost to the employee per month does not exceed 9.5%, based on

the employee's taxable wages in Box 1 of the Form W-2.

• This determination is made after year end
• Note: Box 1 of the W-2 is reduced by pre-tax salary reductions

(e.g. under a Section 401(k) Plan or Section 125 plan)

• Examples

Annual Salary 9.5% Monthly Amount

• $20,000

$1,900 $158.33

• $30,000

$2,850 $237.50

• $50,000

$4,750 $395.83

• $100,000

$9,500 $791.66

35

Employer Mandate Tax – Tier 2 Plan Offered

Affordability Safe Harbor – Standard Rate of Pay

• Cost to the employee per month does not exceed 9.5%, based on

the employee's standard rate of pay for the month. Salaried employees use the base salary. Standard rate of pay for an hourly employee is the hourly wage rate x 130 hours.

• Examples

Hourly Rate x130 9.5%

• $8.00

$1,040 $98.80

• $10.00

$1,300 $123.50

• $15.00

$1,950 $185.25

• $25.00

$3,250 $308.75

36

Employer Mandate Tax – Tier 2 Plan Offered

Affordability Safe Harbor – Poverty Line

• 9.5% x 1/12 x the federal poverty line (2014 = $11,670) = $92.38

per month

• Medicaid Expansion States - 9.5% x 1/12 x the federal poverty

line (2014 = $15,521) = $122.87 per month

37

Full-Time Employee Determinations

A special look back rule is provided for determining “Full- Time Employee” status

• The employer looks back to a previous “Standard Measurement

Period” to determine hours of service and Full-Time Employee status.

• The result (full-time or not full-time) is applied going forward for

a “Stability Period”.

Example: Measure hours from July 1, 2013 to December 31,

• 2013. Employee’s status as full-time or not full-time is fixed

from January 1, 2014 to June 30, 2014. Note: This only applies for purposes of administering the employer mandate tax. It does not affect an employee’s entitlement to premium credits or cost-sharing reductions at an Exchange.

38

Full-Time Employee Determinations Permitted Employee Categories

• Salaried and Hourly
• Bargaining and Non-bargaining
• Separate collective bargaining agreement groups
• Primary places of employment in different states

39

Full-Time Employee Determinations Monthly Measurement Method

• Calculate in real time for each month in the year
• 130 Hours of Service = Full-Time Employee
• Option to use weeks beginning or ending in a month

4 weeks – 120 Hours = Full-Time Employee 5 weeks – 150 Hours = Full-Time Employee Advantage – Simplicity of recordkeeping Disadvantage – Might not be able to make Plan eligibility adjustments in advance to solve a problem with the Tier 1 Tax. Until the month is over, the employer may not know if the Plan was

• ffered to 95% or more of the Full-Time Employees.

40

Full-Time Employee Determinations Monthly Measurement Method

• Special Rules for New Hires who are Full-Time employees

Do not have to be counted for purposes of the tax until the first day of the month after being employed for three months. Example: Hired January 15, do not count until May 1

• Conditions:

The employee is eligible to participate in the plan, except for satisfying a permissible waiting period. Note: This apparently means that the employee’s position of employment is one normally covered by the plan. The employee is offered coverage with minimum value by the first day of the month after being employed for three months

41

Full-Time Employee Determinations

Hours Counting Rules

• Count all hours with all members of the same controlled group
• Do not count hours rendered outside of the United States

Leaves of Absence

• Paid leaves – Credit hours based on paid time
• Unpaid Special Leave – Either ignore the leave time in calculating

average hours or give credit for hours during the leave USERRA (federal law military leave) FMLA (Family and Medical Leave Act) Jury duty

• Other unpaid leaves – zero hours

42

Full-Time Employee Determinations

Salaried Employees - Hours not Counted Choices

• Use actual hours worked from records of hours worked
• 8 hours per day worked
• 40 hours per week worked

IRS still considering special rules for various professions. Employers are directed to use reasonable methods. The preamble provides some suggested rules for:

• Adjunct Faculty – 2.25 hours per class + hours for required time
• utside of class (e.g. required office hours or faculty meetings)
• Layover hours for airline employees – 8 hours per day
• On-call hours. Must count if paid, required to be on premises of

employer or employee’s personal time is substantially restricted.

43

Full-Time Employee Determinations Monthly Measurement Method

Breaks in Employment - Terminations/Rehires

• General Rule – Treat as a new employee if rehired after 13

consecutive weeks with no hours of service

• Optional Rule for employees with less than 13 weeks of service.

Can treat a break of less than 13 consecutive weeks with no hours of service as a termination if: The break is at least 4 weeks Number of weeks with no hours is more than number of weeks previously employed

• This rule is modified to require 26 consecutive weeks for

employers that are educational organizations.

44

Full-Time Employee Determinations

Breaks in Employment - Terminations/Rehires

International Transfers

• Expats - Can treat as terminated if the transfer is outside of the

U.S. and is anticipated to be indefinite or for at least 12 months.

• No Hours are counted for services rendered outside of the U.S.
• Inpats – May treat as a new hire, depending on the number of

week abroad treated as weeks with no hours.

45

Full-Time Employee Determinations Look-Back Measurement Period

• Measure a past period of employment to determine Full-Time

Employee status presently (the Look-Back Period)

• Apply the result to a following period of time (the Stability Period).

The result does not change in the Stability Period no matter how many hours the employee works. Advantage – Allows an employer to always have certainty as to who its Full-Time Employees are. Avoid an inadvertent violation of the Tier 1 Tax that might occur by not covering 95% or more of the Employees who for a month actually average 30 or more hours of service. Disadvantage - Very complicated rules that require extensive recordkeeping and hours tracking. Might only do for hourly employees and not salaried employees.

46

Full-Time Employee Determinations Look-Back Measurement Period

Standard Measurement Period

• Minimum 3 months
• Maximum 12 months

Note: Looking at calendar year 2013 for purposes of 2014.

Stability Period

• Minimum 6 months
• Maximum 12 months
• Not shorter than Standard Measurement Period

Administrative Period

• Not longer than 90 days
• Between Standard Measurement Period and Stability Period. Use

to enroll or dis-enroll employees.

47

Full-Time Employee Determinations Look-Back Measurement Period

Example 1 – Assume Calendar Year Plan Year Standard Measurement Period – December 1, 2012 to November 30, 2013. Administrative Period – December 1, 2013 to December 31, 2013. Stability Period – January 1, 2014 to December 31, 2014 Example 2 – Assume October 1 Plan Year Standard Measurement Period – September 1, 2012 to August 31, 2013 Administrative Period – September 1, 2013 to September 30, 2013. Stability Period – October 1, 2013 to September 30, 2014. Note: The mandate tax is determined on a monthly basis and is reported and paid on a calendar year basis, irrespective of the timing of the Stability Period.

48

Full-Time Employee Determinations

Look-Back Measurement Period New Hires - Categories of employees:

• Seasonal

Customary annual employment is six months or less

• Full-Time Employee

Employee is not seasonal and a reasonable determination is that the employee will average 30 hours per week. The expected length of employment is not considered. All facts and

• circumstances. Treat as Full-Time Employee immediately.
• Variable Hour Employee (Part-Time)

Not seasonal and cannot reasonably be determined to be a Full- Time Employee.

49

Full-Time Employee Determinations

Look-Back Measurement Period New Hires – Full-Time Employee Determinations

• After Full-Time Employee is employed through a full Standard

Measurement Period, use the Plan’s regular Stability Period rules.

• Do not have to be counted for purposes of the tax until the first

day of the month after being employed for three months. Example: Hired January 15, do not count until May 1

• Conditions:

The employee is eligible to participate in the plan, except for satisfying a permissible waiting period. Note: This apparently means that the employee’s position of employment is one normally covered by the plan. The employee is offered coverage with minimum value by the first day of the month after being employed for three months

50

Full-Time Employee Determinations

Look-Back Measurement Period Special Rules for New Hires – If not Full-Time Employees

Initial Measurement Period – 3 months to 12 months. Do not have to be calendar months. Measure from start date or following month. Average hours worked over the entire period to determine 30 hours per week average. Administrative Period – maximum 90 days. However, cannot end later than last day of first month that begins after one-year anniversary of date of hire (not longer than 13 months after date of hire). Stability Period 6 month minimum Not shorter than Initial Measurement Period Note: A longer Initial Measurement Period (e.g. 12 months) may effectively work to exclude limited duration employees and seasonal employees who are not hired next season.

51

Full-Time Employee Determinations

Look-Back Measurement Period Special Rules for New Hires – Not Full-Time Employees

Transition onto rules for Ongoing Employees

• If a full-time employee during Initial Measurement Period:

Keep full-time classification during entire following Initial Stability Period. Test under regular rules for first Standard Measurement Period fully employed in. If not full-time, do not change until end of the initial Stability Period.

• If not a full-time employee during Initial Measurement Period:

Must test in the first Standard Measurement Period fully

• employed. If full-time, immediately switch over to the ongoing

employee rules

52

Full-Time Employee Determinations

Look-Back Measurement Period Example - Variable Hour Employee hired September 1, 2014

• Calendar year plan
• Standard Measurement Period - 12 months
• Stability Period – 12 months
• New Hire Initial Measurement Period - 12 months
• New Hire Stability Period - 12 months
• Measure hours – September 1, 2014 to August 31, 2015.

If not full-time: Determination is good through December 31, 2015. Measure hours from January 1, 2015 to December 31, 2015. Apply results from January 1, 2016 to December 31, 2016. If full-time: Determination applies through August 31, 2016. Measure hours from January 1, 2015 to December 31, 2015 Apply results on from September 1, 2016 to December 31, 2016.

53

Full-Time Employee Determinations

Look-Back Measurement Period Payroll Period Rules

If payroll periods are weekly, bi-weekly or semi-monthly Options to either:

• Include all payroll periods ending in the measurement period
• Include all payroll periods beginning in the measurement period

Calculating the 30 Hour Per Week Average

• Regulations are not clear
• If payroll is weekly and payroll periods ending or beginning in the

determination period are to be used, use the number of weeks for the payroll periods included in the calculation

• If payroll is semi-monthly, or the determination period is simply

stated in months, it appears that an average of 130 hours per month (1,560 per year) will be considered to be an average of 30 hours per week.

54

Full-Time Employee Determinations

Look-Back Measurement Period Special Unpaid Leave Rules

• Family and Medical Leave Act (FMLA)
• Uniformed Services Employment and Reemployment Rights Act

(USERAA)

• Jury duty

When calculating average hours, exclude these periods or credit hours based on the average hours. Special Rules for Educational Organizations

55

Look-Back Measurement Period Special Rules for Educational Organizations Apply if:

• An Employee has an Employment Break Period (i.e. 4

consecutive weeks with no hours of service or special unpaid leave), and

• The Employee is not treated as a new employee when rehired

unless the employee had no hours of service for 26 consecutive weeks When calculating average hours, exclude an employee’s Employment Break Period unless the employee is treated as a new employee when rehired.

• Example: A teacher leaves on June 6 and returns to work August
• 5. The period between June 6 and August 5 is an Employment

Break Period that is excluded when calculating average hours.

Full-Time Employee Determinations

56

Employer Mandate Tax – IRS Reporting Requirements for Employers

• Applies for calendar year 2015 (delayed until 2016 for certain

small employers under 100 FTEs)

• Applies to “Applicable Large Employers” who may be subject to

the mandate tax

57

Employer Mandate Tax – IRS Reporting Requirements for Employers

Reporting to the IRS will include:

• A certification as to whether an employer plan that has minimum

essential health benefits is offered to all full-time employees and their dependents

• If so, certify to the following:

The months such coverage was provided The monthly premium for the lowest cost option The employer’s share of the total plan costs The duration of any waiting period in the plan

58

Employer Mandate Tax – IRS Reporting Requirements for Employers

Report the following:

• The number of full-time employees for each month in the year
• For each full-time employee:

Name, address and social security number (or other taxpayer

ID number)

Number of months the employee was covered under the plan.

59

Employer Mandate Tax – IRS Reporting Requirements for Employers

Report by the following January 31, to each employee that is to be included in the IRS report:

• The name and address of the employer
• Contact information at the employer
• The information regarding plan coverage that is required to be

reported to the IRS

60

Contact Information

Gregory J. Viviani gregory.viviani@squiresanders.com +1 216 479 8622