Directs Treasury Dept. to implement an alternative, less burdensome reporting system for employers
Aug 05 2015
WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Rob Portman (R-OH) introduced the bipartisan Commonsense Reporting Act of 2015 to streamline the Affordable Care Act’s reporting requirements for employers. The legislation would ensure that the Treasury Department has the necessary tax data to enforce the law, while cutting down on unnecessary paperwork and administrative costs for businesses.
The legislation directs the Treasury Department to implement an alternative, prospective reporting system that is more workable and less burdensome for employers than current regulations.
“The Supreme Court has ruled and the debate about the Affordable Care Act is over. It’s time for serious legislative efforts to make the law work better for all Americans,” Sen. Warner said. “While it’s critical that the IRS has the necessary information to enforce the law, I have consistently said that it is equally important that reporting requirements strike the right balance between sufficient data and flexibility for employers. This legislation does exactly that by allowing employers to provide the IRS with appropriate data while reducing unnecessary paperwork and administrative costs.”
“Obamacare’s reporting requirements impose a burdensome compliance process which makes it difficult for employers to offer healthcare to their employees,” Portman stated. “Furthermore, it requires employers to hand over their employees’ sensitive information to the government. Our bill not only streamlines this process, reducing the burden on businesses, but also takes steps to ensure the privacy of the employees’ information. It’s a commonsense bill that reduces burdens on employers and workers.
The Affordable Care Act requires employers and insurers to report information about health insurance coverage to the Internal Revenue Service (IRS) at the end of the tax year. The Commonsense Reporting Act streamlines this process by establishing a voluntarily system which would allow employers to report pertinent information before open enrollment begins, to minimize the administrative burden at the back-end and limit the collection of unneeded information.
The Commonsense Reporting Act has been endorsed by the National Restaurant Association, the Retail Industry Leaders Association, the Food Marketing Institute, the National Association for Health Underwriters, Healthcare Leadership Council, the National Retail Federation, and the Small Business and Entrepreneurship Council.