As we draw closer to the end of 2016, it is time for Applicable Large Employers (ALEs) to start preparing for the 6056 Reporting due in 2017. Below is a summary of changes from 2015 to 2016 in which you should be aware.
2015 Reporting
2016 Reporting
Determining ALE Reporting Status
- Transition relief permitted use of any consecutive 6-month period in 2014.
- Transition relief no longer applies; ALE determination based on 2015 calendar year.
Affordability Safe Harbors
- Affordability threshold 9.56%
- Federal poverty level $11,770
- Affordable FPL premium $93.77
- Affordability threshold 9.66%
- Federal poverty level $11,880
- Affordable FPL premium $95.63 (+2%)
Non- Compliance of the 4980(a) Penalty
- Employers with 100 or more FTEs must offer coverage (Transition Relief for ALEs with 50-99 FTE).
- Coverage must be offered to 70% of all full-time employees.
- When calculating the 4980(a)ull-time employee count is reduced by 80.
- 4980(a) annual penalty of $2,080 per full-time employee.
- Employers with 50 or more FTE must offer coverage (Transition Relief no longer available).
- Coverage must be offered to 95% of all full-time employees.
- When calculating the “A” penalty, the full-time employee count is reduced by 30.
- 4980(a) annual penalty of $2,160 per full-time employee.
IRS Reporting (1094-C/1095-C)
- Employee statements due March 31, 2016.
- IRS eFile due June 30, 2016.
- Employee statements due January 31, 2017.
- IRS eFile due March 31, 2017.