Why do I need to report ACA Forms?
Section 6056 of the Internal Revenue Code was added to the Affordable Care Act (ACA) in 2014, and requires employers with at least 50 full-time employees to File information returns about health insurance coverage. Information from the return is then used by the IRS to manage employer shared responsibility provisions, and to determine employees that are eligible for Premium Tax Credit (PTC).
Who needs to file ACA Forms?
Insurance providers, small businesses, and government entities or tax-exempt organizations who provide health insurance coverage are required to file under Section 6055. Likewise, all Applicable Large Employers (ALE) must file under Section 6056. ALEs are employers with 50 or more full-time employees (or full-time equivalents) and are required to offer at least the minimum essential coverage (MEC) of health insurance to their employees.