IRS issues guidance on ACA employer mandate

On Thursday, the Internal Revenue Service issued draft versions of the reporting forms most large employers will begin using next year to show that their group health insurance plans comply with the health care reform law (Source: "IRS releases draft of employer reporting form for health reform law compliance,” Business Insurance, July 25, 2 014).

Beginning in 2015, employers with at least 100 full-time employees will be required to certify that benefits-eligible employees and their dependents have been offered minimum essential coverage and that their employees' contributions to their premiums comply with cost-sharing limits established under the reform law. Smaller employers with 50-99 full-time employees are required to begin reporting in 2016.

“In accordance with the IRS' normal process, these draft forms are being provided to help stakeholders, including employers, tax professionals and software providers, prepare for these new reporting provisions and to invite comments from them,” the IRS said in a statement released Thursday.

The IRS said it expects to publish draft instructions for completing the reporting forms by late August and that both the forms and the instructions would be finalized later this year.