Proposed Rules on Employer Shared Responsibility Reporting Requirements

Treasury has published proposed regulations - following the July 2 one-year delay - on the employer shared responsibility reporting requirements. The proposed regulations clarify that the reporting is on a calendar year basis, with electronic returns due on March 31 of each year starting in 2015 (for reporting on 2014 information). There are simplified procedures for low-volume W-2 filers (less than 250). In addition to submitting an electronic return to IRS each year, employers must supply forms to employees whose information related to health insurance coverage is reported to the federal government. (This is different than the exchange notification requirement.)

Information required to be submitted by employers to the IRS under this proposed rule include:

• Name and EIN of employer (including contact person)
• Certification of minimum value (60% AV) and affordability (9.5% of income) of plan offering
• Waiting periods applied
• Premium amount, including employee share
• Number of FTEs (calculated monthly)
• Name, address, and TIN of all enrollees

Published along with this proposed rule was another proposed rule on how employers are to report minimum essential coverage to the IRS.  Minimum essential coverage is coverage that offers minimum actuarial value (60%), and is affordable (less than 9.5% of employee income).  This reporting is to be done on an individual employee basis, and will be used by exchanges to verify tax credit eligibility.