The IRS recently released draft forms that employers will use to report on health coverage they offer to their employees. The new reporting requirements, which become effective for the 2015 calendar year, were created by the Affordable Care Act (ACA), and are in addition to the requirement already in effect to report the cost of health insurance on Form W-2. The reporting is voluntary for 2014.

Applicable large employers (employers with 50 or more full-time and full-time equivalent employees) will use Form 1094-C, "Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns," and Form 1095-C, "Employer-Provided Health Insurance Offer and Coverage," to satisfy reporting requirements under Sections 6055 and 6056. Health insurance companies will use Form 1094-B, "Transmittal of Health Coverage Information Returns," and Form 1095-B, "Health Coverage" to satisfy the Section 6055 reporting requirements.

These draft forms can be found by entering the form number in the search field of an online search menu. The IRS anticipates that draft instructions relating to the forms will be available later in August and that both the forms and instructions will be finalized later this year.

For more on reporting requirements, see a previous Tax Hot Topics article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.