IRS explains Substantial Reporting Obligations for Employers, Insurers

The Internal Revenue Service recently issued two sets of proposed regulations regarding a significant and ongoing reporting obligation that employers, insurers and other plan sponsors must meet, under the health reform law.

The reporting will enable the IRS to identify which individuals and employers are complying with the law’s individual and employer mandates, respectively, and to verify the legitimacy of the premium subsidies supplied to individuals purchasing coverage in the public health insurance exchanges, or “marketplaces.”

The IRS is asking employers and other stakeholders to comment on the proposed reporting rules. Though only proposed, the rules are worth studying.  They will likely be finalized in substantially the same form, and they don’t make life any easier for employers, particularly those who prepare their own payrolls. Employers who outsource payroll functions will want to dialogue with their payroll vendor, to determine whether and how the vendor can assist in the reporting process.

Via the Lockton Health Reform blog.

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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