Section 6055 & 6056
Reporting Overview
| Section 6055 | Section 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 mandate | Help 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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