Compliance Corner
January 19, 2022


ANNOUNCEMENTS

Episode 116: US Supreme Court Weighs in on Vaccine Mandates

In this episode, Chase Cannon and Suzanne Spradley break down the recent Supreme Court decision relating to the vaccine mandates for large employers and healthcare workers. Chase starts by outlining the large employer vaccine mandate, including the OSHA emergency temporary standard, or ETS rule, that was challenged in the courts. Next, Chase and Suzanne discuss the Supreme Court’s decision to halt enforcement of the OSHA ETS — what the ruling means from a legal and practical viewpoint and how state law could come into play. While the decision appears to be the end of the road for the OSHA ETS, Chase closes things out by discussing the CMS healthcare worker vaccine mandate (held valid by the Supreme Court) and the vaccine mandate for government contractors (held up in federal courts).

Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

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Reminder: Form W-2 Cost of Coverage Reporting

Large employers must report the cost of group health coverage provided to employees on Form W-2. The requirement applies to employers that filed 250 or more Forms W-2 in 2021. Employer aggregation rules do not apply for this purpose. In other words, the number of Forms W-2 is calculated separately without consideration of controlled groups. Indian tribal governments, sponsors of self-funded church plans and employers contributing to a multiemployer plan exempt from the Form W-2 reporting requirement.


Reminder: Upcoming IRC 6055 and 6056 Reporting Deadlines

Employers that were ALEs in 2021 and sponsored group health plans (whether insured or self-insured) must comply with IRC Section 6056 reporting in early 2022. Specifically, ALEs must complete and distribute Form 1095-C to full-time employees by March 2, 2022 (changed from January 31, 2022). The form should detail whether the employee was offered minimum value, affordable coverage during 2021. The forms may be mailed, electronically delivered or delivered by hand (although proof of delivery in some manner is recommended).

If an employer sponsored a self-insured plan during 2021, it must comply with Section 6055 reporting in 2022. Self-insured employers with 50 or more FTEs must complete Section III of Form 1095-C detailing which months the employee (and any applicable spouse and dependents) had coverage under the employer’s plan. If the self-insured employer has fewer than 50 FTEs, it must complete and distribute a Form 1095-B with such information. Again, the forms must be delivered to employees by March 2, 2022.

Employers must also file the forms with the IRS by February 28, 2022, if filing by paper, and March 31, 2022, if filing electronically. Those that are filing 250 or more forms are required to file electronically. Lastly, the employer is required to file the transmittal Form 1094-C (if filing Forms 1095-C) or Form 1094-B (if filing Forms 1095-B).

As a reminder, the IRS has provided penalty relief for employers that will allow them to forego distributing Form 1095-B to individuals. This comes after the IRS accepted comments on the necessity of Forms 1095-B now that the individual mandate penalty has been zeroed out. If employers post a notice on their website that the document is available upon request and fulfill any such request within 30 days, then they will not have to distribute the Forms 1095-B to covered individuals. But keep in mind that there is no such penalty relief for Form 1095-C.

For further information on the reporting requirements, including recent regulatory guidance, please also see our recent article published in the December 7, 2021 edition of Compliance Corner.

2021 Instructions for Forms 1094-C and 1095-C »
2021 Instructions for Forms 1094-B and 1095-B »
2021 Form 1094-C »
2021 Form 1095-C »
2021 Form 1094-B »
2021 Form 1095-B »