*asked of the IRS in a group call on May 15, 2015
“For purposes of 4980H and the reporting requirements here, whether they waive the insurance or whether they accept an offer made by the employer doesn’t affect the employer shared responsibility payment.
The key is that the employer offers the insurance.
That’s what 4980H is looking at.
And that’s what’s reported on the 1094 and 1095-C.
So the offer is the important part. Whether or not the employee accepts the coverage – or whether they accept it and then waive it – doesn’t impact the 4980H and the Section 6056 reporting requirements.”
Tim Berger | Tax Law Specialist, Internal Revenue Service
Exempt Organizations Office, Tax Exempt and Government Entities Division | Washington, DC
Section 4980H of the Internal Revenue Code
Employer Shared Responsibility Provisions of the Affordable Care Act
Section 6056 of the Internal Revenue Code
Information Reporting Provisions of the Affordable Care Act
IRS Form 1095-C
Employee’s Statement of Offer of Coverage
IRS Form 1094-C
Transmittal of Employer-Provider Health Insurance Offerage and Coverage Information Returns
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Last Review: 8/7/2022 – Revision: 2.0
Applies To: ACA Reporting Requirements, ACA Compliance solution
Categories: Employee Classification