Arthur J. Gallagher & Co. · NYSE:AJG

Arthur J. Gallagher & — Investor Presentation (April 2015)

20 slides from Arthur J. Gallagher &'s investor presentation, April 2015

  1. Slide 1: Sections 6055 and 6056: MEC and ALE Reporting to the IRS

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Sections 6055 and 6056: “MEC” MEC and “ALE” Reporting to the IRS COMPLIANCE CONSULTING | APRIL 2015 Agenda • Background • Who is subject to a Section 6055 and/or 6056 reporting obligation? • IRS Forms: – 1094-B and 1095-B – 1094

  2. Slide 2: Background / Who is Required to Report?

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Background • PPACA created two significant IRS reporting obligations that will commence in early 2016: – Internal Revenue Code Section 6055 requires insurers and sponsors of self-insured plans to prepare annual reports regarding

  3. Slide 3: Section 6055 (MEC) / What is MEC?

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Section 6055 (“MEC”) • Employers (of all sizes) who sponsor self self-insured insured health plans that provide minimum essential coverage to any individual during the calendar year are required to report under Section 6055. – W

  4. Slide 4: Section 6056 (ALE) / Who is an ALE member?

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Section 6056 (“ALE”) • Applicable large employer members (both fully-insured and self-insured) must report information to the IRS about the health coverage, if any, that they offered to full-time employees • Such ALE members mus

  5. Slide 5: ESR Penalties: A Refresher

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 ESR Penalties: A Refresher • Penalty for failing to offer coverage – 4980H(a) – An employer must offer “minimum essential coverage” to 95% (70% for 2015) of its full-time employees and their dependent children up to age 26 or ri

  6. Slide 6: IRS Forms: Walkthrough / Forms 1095-B and 1094-B

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 IRS Forms: Walkthrough © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 11 Forms 1095-B and 1094-B • Used by plan sponsors of self self-insured insured employer coverage if the emplo

  7. Slide 7: 1095-B: Parts I, II, and III / Part IV

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1095-B: Parts I, II, and III © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 13 1095-B: Part IV © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT

  8. Slide 8: 1094-B / Forms 1095-C and 1094-C

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1094-B © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 15 Forms 1095-C and 1094-C • Used by applicable large employer members members, regardless of whether they are fully-insured o

  9. Slide 9: 1095-C: Parts I and II / Line 14 Codes

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1095-C: Parts I and II © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 17 1095-C, Part II, Line 14 Codes • 1A: “Qualifying Qualifying Offer” Offer • 1B: MEC + MV to employee • 1C: M

  10. Slide 10: 1095-C, Part II, Line 16 Codes

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1095-C, Part II, Line 16 Codes • 2A: Not employed during any day of month • 2B: Not full-time employee; did not enroll • 2C: Employee enrolled • 2D: Limited non-assessment period or initial measurement period • 2E: Multiemployer

  11. Slide 11: 1095-C: Part III / 1094-C: Part I

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1095-C: Part III © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 21 1094-C: Part I © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 22

  12. Slide 12: 1094-C: Part II / Line 22

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1094-C: Part II © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 23 1094-C, Part II, Line 22 • Certifications of eligibility to provide simpler employee statements (A & B), eligibili

  13. Slide 13: 1094-C: Part III / Part IV

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 1094-C: Part III © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 25 1094-C: Part IV © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 26

  14. Slide 14: Who Reports What? (Revisited)

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Who Reports What? (Revisited) Employer and Plan Employee Type of Reporting Who Reports IRS Transmittal IRS Return ype Type State e t Statement Health insurance 6055 1094‐B 1095‐B 1095‐B issuer or carrier Large employer* with ful

  15. Slide 15: Details and Deadlines / Method of IRS Reporting

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Details and Deadlines © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 29 Method of IRS Reporting • Mailing the forms to the IRS is permitted for employers with fewer than 250 Forms

  16. Slide 16: Statements to Employees / Return and Statement Deadlines

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Statements to Employees • How should I send out the statements? – Mail – Electronically (if employee has consented to electronic) – Posting to a website (an employer must separately notify the employee) – Employee can also reque

  17. Slide 17: 2016 Deadline Quirks / Penalties

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 2016 Deadline Quirks • Returns for the 2015 calendar year must be filed with the IRS no later than February 29, 2016 since February 28, 2016 is on a Sunday (but still March 31, 2016, if filed electronically) • Statements for the

  18. Slide 18: Action Steps

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Action Steps • Co Collect ect data during du g 2015 0 5 regarding: – Who is covered by MEC – Who are full-time employees – Who was offered coverage – Was coverage affordable • Consider vendor options for data aggregation and rep

  19. Slide 19: Resources / HRCI Certified

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Resources: ajghealthcarereform.com © 2015 GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. | BUSINESS WITHOUT BARRIERS™ 37 HRCI Certified This program has been approved for 1 recertification credit hour through the HR

  20. Slide 20: Thank you!

    Sections 6055 and 6056: “MEC” and “ALE” Reporting to the IRS April 2015 Thank you! The intent of this presentation is to provide you with general information regarding the status of, and/or potential concerns related to, your current employee benefits issue. It does not necessarily fully address all

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