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Quick Summary of Small Business Health Plan Informational Tax Filing Requirements for 2015

This post summarizes the new filing requirements under IRC 6065. This post pertains to only to small business employers with more than 1 but less than 50 employees covered by a health plan that either reimburses the cost of individual insurance or insurance other than employer-sponsored group health insurance or reimburses the cost of uninsured health benefits outside of an integrated arrangement through employer-sponsored group health insurance. This does not apply to employer-sponsored group health insurance plans. It also does not discuss the different rules for Applicable Large Employers with 50 or more employees.

Who must file:

Employers with health plans covering two or more employees that reimbursed the cost of insurance or uninsured health benefits in 2015. One person health plans are exempt. Fully insured group health insurance plans through a policy sponsored by the employer (but not the employer’s spouse or other third party entity) are exempt from filing.

Filing deadline:

March 31, 2016 (as extended under IRS Notice 2016-4)

Tax Form used:

1095-B (for data reporting) https://www.irs.gov/pub/irs-pdf/f1095b.pdf and 1094-B (transmittal form) https://www.irs.gov/pub/irs-prior/f1094b–2015.pdf

Tax penalty (for not filing or filing inaccurately):

$250 per employee

Penalty relief:

Available for 2015 to filers with inaccurate information.

Not available to non-filers.

Related issue: Reporting of health coverage on W2 by small employers in 2015

For 2015 ACA also gives small employers the option – that will eventually be a requirement – to report the cost of health coverage to employees on Form W2 that are not covered in this article. Information on Form W2 reporting requirements for small employers can be found at https://www.irs.gov/Affordable-Care-Act/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.

Related issue: excise taxes under 4980D

The same type of transactions discussed in this post that trigger informational filings may also trigger excise tax penalties under market reform provisions as a separate issue that is not discussed here. See this list of other articles for more information on Section 4980D excise taxes for small business health plans.

More information:

Questions and Answers on Information Reporting by Health Coverage Providers (Section 6055)

 

 

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