Employer reporting requirements under the Affordable Care Act (ACA)

The ACA will require employers with 50 or more full-time and full-time equivalent employees to report the cost of employer-sponsored coverage to the Internal Revenue Service (IRS). The purpose of the new reporting requirement is to give the IRS information that allows it to review your employer-sponsored coverage and to manage the employer shared responsibility provisions if necessary.


What are the new reporting requirements?

There are two new reporting requirements that will increase the time employers spend tracking and reporting on health insurance data:

  1. The employer will be required to supply the IRS with the following information at a time set by the Secretary of The Department of Health and Human Services (HHS):
  • Basic employer information such as the name of the business and the employer identification number (EIN).
  • A certification as to whether the employer offers its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan.
  • If the employer certifies that it did offer its full-time employees (and their dependents) the opportunity to enroll, additional information must be provided:
    • The length of any waiting period with respect to such coverage.
    • The months during the calendar year for which coverage under the plan was available.
    • The monthly premium for the lowest-cost option in each of the enrollment categories under the plan.
    • The employer share of the total allowed costs of benefits provided under the plan.
  • The number of full-time employees for each month during the calendar year.
  • The name, address and tax identification number (TIN) of each full-time employee during the calendar year.
  • The months during which full-time employees (and any dependents) were covered under the employer-sponsored health benefits plan.
  • Any other potentially required information.
  1. The employer will also need to supply the full-time employees who are listed on the report above with a written statement showing:
  • Basic employer information such as the name of the business, address and employer phone number/contact information.
  • Same information that was submitted about the individual to the IRS.
  • Written report must be supplied to the full-time employees by Jan. 31 of the following calendar year for which the return was submitted.
  • The reporting is separate from any other W-2 reporting requirements.

How you can prepare

You can get a head start preparing for these new IRS health insurance reporting requirements by spending time now setting up a monthly tracking system for data needed for the reporting requirements. This will save you time when the reporting requirements are due beginning in 2015 with the 2014 tax year.


Wellmark is here to inform, lead, assist and support you through all the ACA changes as you make your decisions about your group health plan. Talk to your tax advisor, Wellmark representative, broker or agent, and continue to monitor WeKnowReform.com.

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