Video instructions and help with filling out and completing Can Form 1094 B Upgrade

Instructions and Help about Can Form 1094 B Upgrade

Good morning everyone welcome to the Miller Johnson webinar update for employers on the new ACA section 60 55 and 60 56 reporting requirements my name is Mary Bauman joining me on this call today is Tripp van der Waal another attorney in our employee benefits practice group good morning trip good morning Mary we're going to try to get along this morning and hopefully we won't be in any arguments along the way I don't think we will do you think so true I hope I'm not planning then okay here's a few housekeeping matters before we get going this morning first of all all of your lines are muted you can submit questions via the questions feature on your dashboard we are going to answer questions but not until the end of the presentation as time permits and then I should also mention that the slides that you are seeing this morning along with a recording link will be made available following our webinar some of you on the call today may be interested in the hrc I continuing ed credits this webinar has been approved for 1.5 credits the only catch is you can get an approval letter emailed to you provided that you remain logged in to the entire webinar for the entire duration so that's that's the string that's attached there and with that we're going to get going so the final reporting regulations how does this all work while the individual mandate penalty is you may recall took effect last year that's the requirement that all individuals are enrolled in minimum essential coverage or pay a penalty and the employer pair play penalty which takes it impacts large employers takes effect beginning this year and then beginning next year the IRS is going to require employer's to report in order to enforce these two penalties about a year ago last March final regulations or issue regarding these do reporting requirements I indicate that they're either imposed under the Affordable Care Act or health care reform we refer to those two terms interchangeably and then this past summer the IRS released draft forms and draft instructions and the forms and instructions were issued in final form this past februari I should mention that the final forms and final instructions are for use in the event you would want to optionally report for 2014 that's not required the required reporting is for 2015 and that reporting occurs in the first quarter of 2016 so it is possible that before we get to next year there may be some tweaks to these forms and instructions so they may be still slightly revised before they are used for next this year reporting in next year now there are two different kinds of reporting the section 6055 that's a section of the Internal Revenue Code by the way that was added by the Affordable Care Act and that's for individual mandate reporting and then section 60 56 is the payer play reporting we're going to talk about 6055 first and 6055 requires annual reporting to the IRS and also to responsible individuals that basically the policyholder or primary insured person as to whether the coverage constitutes minimum essential coverage and as I mentioned this reporting is intended to assist the IRS enforce the individual mandate now all individuals with certain exceptions by the way if you are a conscientious objector for religious reasons like you're a Christian Scientist or maybe you're incarcerated or if you're super low income you may not have to be enrolled in this coverage but essentially everybody else does have to be enrolled in the coverage or pay a penalty and the 6055 reporting applies to all employers regardless of size if they offer a health plan if you're if you don't offer a health plan at all you don't have to worry about 60 55 regardless of your size but if you do you must contend with 6055 reporting now who is responsible for the 6055 reporting trip I know if the plane is fully insured the insurance company assumes this on the employer's behalf and if the plan is self-funded the employer is the one responsible are there any other little wrinkles to that that we should be aware of there are a few other unique arrangements specifically multi-employer plans those are those are the plans that are collectively bargained and multiple employer welfare arrangements or whatever lyra ferred to as Mila's for a multi-employer plan again those collectively bargain plans it is the multi-employer plan that will have to satisfy the section 6055 reporting with the me was now you're going to have to look through the me one see is that me will fully insured or self-funded again if it's fully insured the insurer providing the coverage for the meal will assume the section 6055 reporting but if the miele is self-funded is actually each individual employer that participates in the moua that has to satisfy the section 6055 reporting so the mia as the entity will not actually will not complete the section 60 55 now I and of course it's more fun when trip that I don't totally rehearse this so this is a new question trip but what about if I'm an employer that is has unionized employees in that multi-employer plan but then I have some non-union employees how do I purse that one again you'll have to in this situation in your question of the non-union employees also participating the multi-employer probably not well then you're going to have to look to what plans covering them if they're covered under a fully insured arrangement they can ensure but if you have a separate self-funded plan for those not employees then for those non-union employees you will have to report under Section six and 55 so it's really on a plan by plan basis in terms of that reporting pro okay and the other thing to