A bill that would streamline healthcare reporting requirements for employers was advanced by the House Committee on Ways and Means this week.
The Employer Reporting Improvement Act would accomplish several things. First, it would permit employers to electronically file certain documents related to their employees’ health coverage if the employee has previously agreed to electronic statements. Further, it would streamline reporting by allowing employers the option to use covered individuals’ full name and date of birth if the employer is unable to collect the covered individuals’ taxpayer identification number. Finally, it would create a six-year statute of limitations.
“Small businesses need more certainty from the IRS,” Rep. Jason Smith (R-MO), chair of the committee, said. “It’s not right that a supercharged IRS can leave small businesses in limbo, sometimes for years, about whether they correctly filed their health insurance coverage information. Small businesses should be focused on serving employees and customers, not fulfilling Washington mandates. Representatives Smith and Thompson’s Employer Reporting Improvement Act reins in the IRS’ ability to penalize American small businesses and gives them peace of mind that they won’t be unfairly hit with a penalty.”
The bill was sponsored by Chairman Smith, along with U.S. Reps. Adrian Smith (R-NE) and Mike Thompson (D-CA).
“The Employer Reporting Improvement Act is an important step toward streamlining employer reporting requirements,” Adrian Smith said. “Now more than ever, employers need certainty to navigate the evolving needs of the workforce, and I’m glad to see this bipartisan bill favorably reported out of the Ways and Means Committee.”
The bill passed out of the committee by a unanimous vote of 37-0.
“I am glad that the Ways and Means Committee today passed my bill reducing administrative burdens and making it easier for businesses to comply with the Affordable Care Act,” Thompson said. “This bill will streamline reporting requirements so companies can focus on what they do best – creating jobs and growing our local economies.”