A new FAQ that addresses the reporting of COBRA coverage on the 1095-C employee statement has been issued by the Internal Revenue Service.
The FAQ stresses an offer of COBRA coverage to a current employee due to a reduction in hours is reported differently than an offer of COBRA coverage to a former employee. We provided exhibits in our workshop materials to illustrate some of the COBRA examples the IRS illustrated in the FAQ and will provide the 1095-C exhibits upon request to clients who were unable to attend the workshop.
As the Affordable Care Act’s new IRS reporting requirement deadline looms, it is critical plan sponsors understand the data requirements and complexities of reporting employer and employee information.
Henderson Brothers, Inc. will keep you posted as additional guidance and clarity is released.
Please note that the information contained in this document is designed to provide authoritative and accurate information, in regard to the subject matter covered. However, it is not provided as legal or tax advice and no representation is made as to the sufficiency for your specific company’s needs. This document should be reviewed by your legal counsel or tax consultant before use.
Additionally, the messages and content within the Pittsburgh Health Care Reform group do not reflect the advisory services of Henderson Brothers, Inc.