Employer Group Calls on IRS to Ease Health Care Paperwork
Washington, D.C.
– The Employer Health Benefits Association (EHBA) has urged the Internal Revenue Service (IRS) to simplify and streamline the paperwork associated with health care benefits. In a letter to IRS Commissioner Chuck Rettig, EHBA President and CEO William Gist Jr. highlighted the excessive burden that complex regulations and reporting requirements impose on employers. He noted that these requirements divert valuable resources and increase administrative costs.
Key Issues Raised
*
Form 1095-C Reporting:
Employers are required to report detailed information about health insurance coverage to both employees and the IRS (Form 1095-C). EHBA requested simplified reporting options, such as allowing employers to provide information digitally or partnering with insurance carriers to streamline the process. *
Affordable Care Act (ACA) Employer Mandate:
EHBA advocated for a more flexible interpretation of the ACA’s employer mandate, which requires employers with 50 or more employees to offer health insurance. They suggested allowing employers to count combined hours worked by part-time employees towards the full-time employee threshold. *
Excise Taxes:
Employers are subject to excise taxes if they fail to comply with certain health care reporting requirements. EHBA requested relief from these penalties for unintentional errors and for employers experiencing administrative challenges.
Impact on Businesses
Gist emphasized that the paperwork burden is particularly burdensome for small businesses with limited resources. He argued that simplifying these requirements would free up time and money that could be used to invest in employees and grow businesses. “The excessive paperwork associated with health care benefits is a significant drain on businesses,” said Gist. “We urge the IRS to take immediate steps to reduce this burden and alleviate the administrative challenges facing employers.”
IRS Response
The IRS has not yet publicly responded to EHBA’s letter. However, they have previously acknowledged the challenges associated with health care reporting and have taken steps to simplify the process. In 2021, the IRS implemented a “good faith” exception for 1095-C reporting, which allowed employers to avoid penalties if they made reasonable efforts to comply with the regulations.
Next Steps
EHBA plans to continue working with the IRS and other stakeholders to advocate for further simplification of health care paperwork. They believe that by reducing the administrative burden, employers can focus on providing affordable and accessible health coverage to their employees. The IRS is expected to issue final regulations on the ACA employer mandate in the coming months. Businesses should stay informed of these updates to ensure compliance and avoid potential penalties.
Employer group calls on IRS to ease health care paperwork
The Employer Group, a coalition of large employers, is calling on the Internal Revenue Service (IRS) to ease the paperwork burden associated with health care reporting. In a letter to the IRS, the group said that the current reporting requirements are complex and time-consuming, and that they are placing an undue burden on employers. The group is asking the IRS to make a number of changes to the reporting requirements, including: * Reducing the number of forms that employers are required to file * Simplifying the instructions for the forms * Allowing employers to file the forms electronically * Providing employers with more time to file the forms The group said that these changes would help to reduce the burden on employers and would make it easier for them to comply with the reporting requirements. The IRS has not yet responded to the group’s request.
Additional information:
The Employer Group is a coalition of large employers that was formed in 2006. The group’s mission is to advocate for policies that promote economic growth and job creation. The IRS is the federal agency responsible for collecting taxes and administering the tax laws. The Affordable Care Act (ACA) is a federal law that requires most employers to provide health insurance to their employees. The ACA also includes a number of reporting requirements for employers. The reporting requirements under the ACA can be complex and time-consuming. Employers are required to file a number of different forms, including the Forms 1094-B and 1095-C. The instructions for the forms are often complex and confusing. Employers are also required to file the forms electronically, which can be a challenge for some employers. The IRS has acknowledged that the reporting requirements under the ACA can be burdensome for employers. The IRS has made a number of changes to the reporting requirements in recent years, but the requirements remain complex and time-consuming.
