The Affordable Care Act (ACA) mandate is still in play. As we edge towards the end of the year, it's important that your HR/Payroll provider can provide what you need, and that you are collecting the information that will be needed for employee forms and filing with the IRS.
Are you an ALE? Your company may have grown over the past year, and if you now have more than 50 FTE's, then you will need to file. Applicable Large Employers components.
Enforcement of ACA Requirements
Since the ACA became law, the IRS has managed over 40 provisions regarding implementation of ACA.
Perhaps the most pressing from an employer’s view point is play or pay. Large employers (50+ FTEs) who do not offer coverage for all of their full-time employees, offer unaffordable minimum essential coverage or offer plans with high out-of-pocket costs could face tax penalties.
iSolved HCM provides extensive analysis on employees covered and affordability, and makes suggestions, by employee, to get your business into compliance.
The employer would also be subject to a tax penalty if there is at least one full-time employee certified as having purchased health insurance through an exchange and was eligible for a tax credit or subsidy.
Fines for Non-compliance Under the ACA Requirements
Employer fines imposed for ACA non-compliance are referred to as employer shared responsibility payments. The full details of who will have to pay, how much to pay and under what circumstances is pretty complicated, but rest assured those fines can be substantial.
Data to be Collected to Meet the ACA Requirements
ALEs should be recording and compiling detailed, monthly information in order to meet filing requirements. Some of this required data includes:
- Federal Employer Identification Numbers (FEIN) within a controlled group
- Total employees
- Total full-time employees
- Total months covered
- Validation that minimum essential coverage was offered, affordable and met the minimum value requirements
- Personal information, including Social Security Number and birth date
Forms to be Provided/Filed Under the ACA Requirements
Required reporting will be done via four IRS forms:
- 1094-B (Transmittal of Health Coverage Information Returns)
- 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns)
- 1095-B (Health Coverage)
- 1095-C (Employer-Provided Health Insurance Offer and Coverage).
ALEs will file Forms 1094-C and 1095-C, while the coverage provider (or self-insured plan sponsor) has the legal obligation to furnish forms 1094-B and 1095-B to the plan participants.
2018 Deadlines for ACA Requirements
1095 C forms need to be delivered to your employees by 3/2/2018 (updated)
Paper filing with the IRS - by 2/28/2018
eFiling with the IRS - by 4/2/2018
ALE's that file 250 or more returns with the IRS must file the returns electronically
See updated deadlines and background in Accounting Today article
iSolved HCM can generate all of the required ACA forms and do the filing for your organization.
Be Prepared to Meet the ACA Requirements
The challenges of ACA compliance can be met with the right solution that manages employee data, time and attendance, HR, payroll and benefits so that an employer is able to quickly review data. If you use outside assistance, make sure they provide a defined project plan to ensure your compliance.
Your Game Plan:
- Know exactly what should be done
- Define a process
- Manage and compile data
- Understand the forms and instructions
- Meet the deadlines
The bottom line? Be ready – you have to comply!
You might also find the ALE Info Center helpful.