Commonsense Reporting Act of 2021
12/31/2022, 8:59 AMSummary of Bill HR 5318
Bill 117 HR 5318, also known as the Commonsense Reporting Act of 2021, was introduced in the US Congress with the aim of simplifying and streamlining the reporting requirements for employers when it comes to providing information to the Internal Revenue Service (IRS) and the Social Security Administration (SSA) about their employees.The bill proposes to reduce the burden on employers by allowing them to use a single form to report employee wages and tax information to both the IRS and the SSA. This would eliminate the need for duplicate reporting and reduce the likelihood of errors in reporting.
Additionally, the Commonsense Reporting Act of 2021 seeks to improve the accuracy of reported information by requiring the IRS and SSA to work together to develop a system for verifying the accuracy of reported data. This would help to ensure that employees receive the correct tax credits and benefits they are entitled to. Overall, the goal of this bill is to make the reporting process more efficient and less burdensome for employers, while also improving the accuracy of reported information. It is a bipartisan effort to streamline government processes and make it easier for businesses to comply with reporting requirements.
Congressional Summary of HR 5318
Commonsense Reporting Act of 2021
This bill addresses the eligibility verification process for the premium assistance tax credit and cost-sharing subsidy under the Patient Protection and Affordable Care Act (PPACA). It requires the Department of the Treasury to develop and implement a reporting system that allows employers to voluntarily report information about their health plans for the current plan year prior to the beginning of open enrollment. The bill also allows electronic transmission of employee and enrollee statements and permits Treasury to accept full names and dates of birth in lieu of dependents' and spouses' Social Security numbers.
The bill also allows certain large employers who do not offer their employees minimum health care coverage 90 days to appeal an assessment for not providing such coverage.
The Government Accountability Office must evaluate (1) for the period beginning on January 1, 2015, and ending on December 31, 2020, the notification of employers by PPACA exchanges of the eligibility of employees for advance payments of the premium assistance tax credit or cost-sharing subsidies; and (2) for calendar year 2022, the functionality of the prospective reporting system established by this bill, including the accuracy of information collected.
