Title I, SEC. 1602. REQUIREMENT FOR INFORMATION REPORTING. (a) Reporting of End-of-Year Information to Qualifying Employees. (1) In general. Each employer shall provide to each individual who was a qualifying employee of the employer during any month in the previous year information described in paragraph (2) with respect to the employee. (2) Information to be supplied. The information described in this paragraph, with respect to a qualifying employee, is the following (as specified by the Secretary): (A) Regional alliance information. With respect to each regional alliance through which the individual obtained health coverage: (i) The total number of months of full-time equivalent employment (as determined for purposes of section 6121(d)) for each class of enrollment. (ii) The amount of wages attributable to qualified employment and the amount of covered wages (as defined in paragraph (4)). (iii) The total amount deducted from wages and paid for the family share of the premium. (iv) Such other information as the Secretary of Labor may specify. (B) Corporate alliance information. With respect to a qualifying employee who obtains coverage through a corporate alliance health plan: (i) The total number of months of full-time equivalent employees (as determined under section 1901(b)(2)) for each class of enrollment. (ii) Such other information as the Secretary of Labor may specify. (3) Alliance specific information. In the case of a qualifying employee with respect to whom an employer made employer premium payments during the year to more than one regional alliance, the information under this subsection shall be reported separately with respect to each such alliance. (4) Covered wages defined. In this section, the term ``covered wages'' means wages paid an employee of an employer during a month in which the employee was a qualifying employee of the employer. (b) Reporting of Information for Use of Regional Alliances. (1) In general. Each employer (including corporate alliance employers) shall provide under subsection (f) on behalf of each regional alliance information described in paragraph (2) on an annual basis, information described in paragraph (3) on a monthly basis, and information described in paragraph (4) on a one-time basis, with respect to the employment of qualified employees in each year, month, or other time, respectively. (2) Information to be supplied on an annual basis. The information described in this paragraph, with respect to an employer, is the following (as specified by the Secretary of Labor). (A) Regional alliance information. With respect to each regional alliance to which employer premium payments were payable in the year: (i) For each qualifying employee in the year (I) The total number of months of full-time equivalent employment (as determined for purposes of section 6121(d)) for the employee for each class of enrollment. (II) The total amount deducted from wages and paid for the family share of the premium of the qualifying employee. (ii) The total employer premium payment made under section 6121 for the year with respect to the employment of all qualifying employees residing in the alliance area and, in the case of an employer that has obtained (or seeks to obtain) a premium discount under section 6123, the total employer premium payment that would have been owed for such employment for the year but for such section. (iii) The number of full-time equivalent employees (determined under section 6121(d)) for each class of family enrollment in the year (and for each month in the year in the case of an employer that has obtained or is seeking a premium discount under section 6123). (iv) In the case of an employer to which section 6124 applies in a year, such additional information as the Secretary of Labor may require for purposes of that section. (v) The amounts paid (and payable) pursuant to section 6125. (vi) The amount of covered wages for each qualified employee. (3) Information on a monthly basis. (A) In general. The information described in this paragraph for a month for an employer is such information as the Secretary of Labor may specify regarding (i) the identity of each eligible individual who changed qualifying employee status with respect to the employer in the month; and (ii) in the case of such an individual described in subparagraph (B)(i) (I) the regional alliance for the alliance area in which the individual resides, and (II) the individual's class of family enrollment. (B) Changes in qualifying employee status described. For purposes of subparagraph (A), an individual is considered to have changed qualifying employee status in a month if the individual either (i) is a qualifying employee of the employer in the month and was not a qualifying employee of the employer in the previous month, or (ii) is not a qualifying employee of the employer in the month but was a qualifying employee of the employer in the previous month. (4) Initial information. Each employer, at such time before the first year in which qualifying employees of the employer are enrolled in regional alliance health plans as the Board may specify, shall provide for the reporting of such information relating to employment of eligible individuals as the Board may specify. (c) Reconciliation of Employer Premium Payments. (1) Provision of information. Each employer (whether or not the employer claimed (or claims) an employer premium discount under section 6123 for a year) that is liable for employer premium payments to a regional alliance for any month in a year shall provide the alliance with such information as the alliance may require (consistent with rules of the Secretary of Labor) to determine the appropriate amount of employer premium payments that should have been made for all months in the year (taking into account any employer premium discount under section 6123 for the employer). (2) Deadline. Such information shall be provided not later than the beginning of February of the following year with the payment to be made for that month. (3) Reconciliation. (A) Continuing employers. Based on such information, the employer shall adjust the amount of employer premium payment made in the month in which the information is provided to reflect the amount by which the payments in the previous year were greater or less than the amount of payments that should have been made. (B) Discontinuing employers. In the case of a person that ceases to be an employer in a year, such adjustment shall be made in the form of a payment to, or from, the alliance involved. (4) Special treatment of self-employed individuals. Except as the Secretary of Labor may provide, individuals who are employers only be virtue of the operation of section 6126 shall have employer premium payments attributable to such section reconciled (in the manner previously described in this subsection) under the process for the collection of the family share of premiums under section 1344 rather than under this subsection. (d) Special Rules for Self-Employed. (1) In general. In the case of an individual who is treated as an employer under section 6126, the individual shall provide, under subsection (f) on behalf of each regional alliance, information described in paragraph (2) with respect to net earnings from self-employment income of the individual in each year. (2) Information to be supplied. The information described in this paragraph, with respect to an individual, is such information as may be necessary to compute the amount payable under section 6131 by virtue of section 6126. (e) Form. Information shall be provided under this subsection in such electronic or other form as the Secretary specifies. Such specifications shall be done in a manner that, to the maximum extent practicable, simplifies administration for small employers. (f) Information Clearinghouse Functions. (1) Designation. The Board shall provide for the use of the regional centers (which are part of the electronic data network under section 5103) to perform information clearinghouse functions under this section with respect to employers and regional and corporate alliances. (2) Functions. The functions referred to in paragraph (1) shall include (A) receipt of information submitted by employers under subsection (b) on an annual (or one-time) basis, (B) from the information received, transmittal of information required to regional alliances, (C) such other functions as the Board specifies. (g) Deadline. Information required to be provided by an employer for a year under this section (1) to a qualifying employee shall be provided not later than the date the employer is required under law to provide for statements under section 6051 of the Internal Revenue Code of 1986 for that year, or (2) to a health alliance (through a regional center) shall be provided not later than the date by which information is required to be filed with the Secretary pursuant to agreements under section 232 of the Social Security Act for that year. (h) Notice to Certain Individuals Who Are Not Employees. (1) In general. A person that carries on a trade or business shall notify in writing each individual described in paragraph (2) that the person is not obligated to make any employer health care premium payment (under section 6121) in relation to the services performed by the individual for the person. (2) Individual described. An individual described in this paragraph, with respect to a person, is an individual who normally performs services for the person in the person's trade or business for more than 40 hours per month but who is not an employee of the person (within the meaning of section 1901(a)). (3) Timing; effective date. Such notice shall be provided within a reasonable time after the individual begins performing services for the person, except that in no event is such a notice required to be provided with respect to services performed before January 1, 1998. (4) Exceptions. The Secretary shall issue regulations providing exceptions to the notice requirement of paragraph (1) with respect to individuals performing services on an irregular, incidental, or casual basis. (5) Model notice. The Secretary shall publish a model notice that is easily understood by the average reader and that persons may use to satisfy the requirements of paragraph (1).