ACA reporting rules: A plain-English breakdown

by Christian Schappel

If you think the Obamacare reporting requirements issued by the IRS are confusing, you’re not alone. But we’ve cut through the clutter to get to the point of what’s required. 

Who has to report

First of all, let’s make it clear who has to abide by these reporting rules. Who knows maybe you’re small enough to recuse yourself from all this mess.

The reporting requirements apply to “applicable large employers” (ALE) — those who employ 50 or more full-time or full-time equivalent employees. They also apply to anyone who provides minimum essential health coverage under the law to an individual — this would apply to a very small self-insured employer, for example.

Who’s a full-time equivalent employee? That’s an issue we tackle here.

The IRS then says: “If an employer has fewer than 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is not an ALE for the current calendar year. Therefore, the employer is not subject to the employer shared responsibility provisions or the employer information reporting provisions for the current year.”

Reporting requirements

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