NRECA ACA Tax Reporting Data Report and 2016 ACA Tax Forms
The initial data report from NRECA to help cooperatives prepare for the Affordable Care Act (ACA) tax reporting requirements for the 2016 tax year will be available in mid-December. The report will be provided to all co-ops in the NRECA Medical Plan, and those that sponsor a health reimbursement arrangement (HRA) administered by Cooperative Benefits Administrators (CBA), through the Message Center on the Employee Benefits website. Report notifications will be sent to the primary benefits administrator, as indicated in NRECA’s records, for the subgroups he or she administers.
This preliminary report includes the following data through November 2016:
- Co-op name and subgroup number
- Demographic information for covered individuals (name, Social Security number, date of birth, address)
- The months each individual was covered by the NRECA Medical Plan and CBA-administered HRA plan, if applicable
The report shows only the data NRECA has on file. Blank spaces on the report indicate fields where NRECA doesn’t have data. The data was originally provided to NRECA by co-ops, so co-op records may be more complete than the report. The report can be used to verify gaps in co-op data and reveal discrepancies between NRECA and co-op records. The preliminary report also can help co-ops identify additional data they may need to collect from employees.
The final data report for 2016 will be provided to co-ops in January 2017.
ACA tax forms and instructions
The Internal Revenue Service (IRS) has released the final instructions and 2016 Forms 1094-C and 1095-C, which employers with at least 50 full-time employees or equivalents, known as applicable large employers, use to comply with the employer mandate, and in most cases, the individual mandate of the ACA. Changes include new codes for conditional offers of spousal coverage, additional guidance on offers of post-employment coverage and COBRA continuation coverage and revisions to the definition of full-time employee.
The IRS also has released the final instructions and 2016 Forms 1094-B and 1095-B, which employers with fewer than 50 full-time employees or equivalents use to comply with the individual mandate. Applicable large employers also may use these forms to fulfill individual mandate reporting. Changes include guidance on reporting coverage in catastrophic health plans and clarifications to the form.
The instructions for both sets of forms also convey that the IRS hasn’t granted an automatic extension for 2016 tax year reporting, as it did for 2015 tax year reporting. The deadlines for 2016 tax year reporting are:
- January 31, 2017 to furnish forms to full-time employees
- February 28, 2017 to file forms with the IRS by paper
- March 31, 2017 to file forms with the IRS electronically
The instructions provide directions on how employers may request a 30-day filing extension.
NRECA will be providing more information on the instructions and forms for the 2016 tax year, including a webinar, in January 2017.
For general questions on ACA tax reporting, speak with your field representative. For questions on the NRECA data report, contact Jim Antetomaso at 703.907.6474 or jim.antetomaso@nreca.coop. You also can contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.
This article is provided for informational purposes only. NRECA is not authorized to provide tax or legal advice to co-ops about this topic. Co-ops should seek confirmation of this information from their tax or legal advisors.