Health Care Law: Information Reporting for Self-Insured Employers

Under the Health Care Law, anyone who provides health care coverage to individuals has to report some information to the IRS and to those individuals covered by the plans. This requirement applies to insurance companies and government agencies, but it also affects some employers.

Some provisions of the Health Care Law apply only to those with a large workforce, but this is not one of them. If you’re an employer who provides self-insured employer-sponsored coverage, you will need to report that coverage regardless of the size of your workforce.

You need to track some information each month so you can report it at tax time the following year. Keep track of both information about individuals enrolled in the coverage you’re providing, as well as the months you provided coverage for each individual.

At the beginning of each year, you’ll need to prepare statements for the individuals you covered and then file information returns with the IRS. The deadlines will be slightly different each year, and will also differ if you file electronically vs. on paper.

Most providers and smaller employers will use Form 1095-B, but if you have 50 or more full-time employees, you’ll use Form 1095-C instead. You’ll also need to include a transmittal form (either Form 1094-B or 1094-C).


About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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