February 19, 2020

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The Compliance Corner podcast will be available at a later date.

Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

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Reminder: Upcoming IRC 6055 and 6056 Reporting Deadlines

Applicable large employers (ALEs — those with 50 or more full-time employees including equivalents, or FTEs) in 2018 must comply with IRC Section 6056 reporting in early 2020. Specifically, ALEs must complete and distribute a Form 1095-C to full-time employees by March 2, 2020 (changed from January 31, 2020). The form should detail whether the employee was offered minimum value, affordable coverage during 2019. The forms may be mailed, delivered electronically or delivered by hand (although proof of delivery in some manner is recommended).

If an employer sponsored a self-insured plan during 2019, it must comply with Section 6055 reporting in 2020. Self-insured employers with 50 or more FTEs must complete Section III of Form 1095-C detailing which months the employee (and any applicable spouse and dependents) had coverage under the employer’s plan. If the self-insured employer has fewer than 50 FTEs, it must complete and distribute a Form 1095-B with such information. Again, the forms must be delivered to employees by March 2, 2020.

Employers must also file the forms with the IRS by February 28, 2020, if filing by paper and March 31, 2020, if filing electronically. Those that are filing 250 or more forms are required to file electronically. Lastly, the employer is required to file the transmittal Form 1094-C (if filing Forms 1095-C) or Form 1094-B (if filing Forms 1095-B).

As a reminder, the IRS recently provided penalty relief for employers which will allow them to forgo distributing the Form 1095-B to individuals. This comes after the IRS accepted comments on the necessity of the Forms 1095-B now that the individual mandate penalty has been zeroed out. As long as employers post a notice on their website that the document is available upon request, and then fulfill any such request within 30 days — they don’t have to distribute the Forms 1095-B to covered individuals. But keep in mind that there is no such penalty relief for Form 1095-C.

Form 1094-C »
Form 1095-C »
Forms 1094-C and 1095-C Instructions »
Form 1094-B »
Form 1095-B »
Forms 1095-B and 1095-B Instructions »

Reminder: Medicare Part D Disclosure to CMS

As a reminder, employers who sponsor a group health plan that provides prescription drug coverage to Medicare Part D eligible individuals must disclose to CMS, on an annual basis, whether the coverage qualifies as creditable or non-creditable. The disclosure is due no later than 60 days after the beginning of each plan year. Thus, for calendar year plans, the disclosure is due March 1, 2020.

CMS Disclosure Form »
CMS Guidance »