Section 6055 & 6056

Section 6055 & 6056

Reporting Overview

 Section 6055Section 6056
Applies to:Providers of minimum essential coverage (MEC)Applicable large employers (ALEs)
Requires reporting entities to:File information with the IRS and provide statements to covered individuals (1094-B and 1095-B)File information with the IRS and provide statements to full-time employees (1094-C and 1095-C)
Purpose:Help administer the individual mandateHelp administer the employer shared responsibility rules and determine eligibility for Exchange subsidies

Who is an Applicable Large Employer (ALE)?

  • For a calendar year, an employer that employed, on average, at least 50 full-time/full time equivalent employees during the prior calendar year
  • Same definition as the pay or play rules
  • Aggregation rules apply for determining employer size but each company reports under its own EIN
  • Full-time Employee:¬†Employed on average at least 30 hours of service per week (130 hours) in a calendar month
  • Full-time Equivalent (FTE) Employee:¬†Hours of service for part-time employees (up to 120 hours/person per month), divide by 120, result = number of FTE employees for the month

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