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ACA Compliance

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The ACA (Affordable Care Act) is burdensome and complex, with changes to many different laws or sections of our tax code.

With nearly 100 provisions in the ACA since its enactment, it seems to continually impact employer responsibilities and reporting, with potential penalties for non-compliance.

Ignorance of the law is no excuse to the government!

ACA Compliance: Company Size Determination

Determining if your company is an applicable large employer (ALE) is just one of the ACA requirements. Employers with more than 100 full-time equivalents (combination of full-time and part-time employees) is called an ALE (Applicable Large Employer).

An ALE must offer affordable health plans that provide at least a minimum level of coverage to their full-time employees (and their dependents), or possibly be subject to the employer shared responsibility penalty.

This requirement was expanded to companies with 50-99 FTE’s in January of 2016.

ACA Compliance: Workforce information needed

Though no employer shared responsibility payments were assessed in 2014, employers must use their 2014 workforce information (e.g., number of employees, hours of service), called the “look back” or “measurement period”, to determine their criteria for 2015. The number of employees is a calculated value of full-time and part-time employees over a consecutive 6 month period. In the future, it is likely that a full 12 months will be used, so pick your best 6 month period this time around!

ACA Compliance: Tax Filing Required

The ACA also amended the tax code, adding sections 6055 and 6056. ALEs are required to file information returns with the IRS and provide statements to their full-time employees about health insurance coverage offered by the employer for 2015.

Section 6055

  • Insurers and self-funded plans
  • Enforce the individual mandate
  • Show all individuals who are covered
  • Form 1094B transmittal to the IRS
  • Form 1095B notice to the individual
Section 6056
  • Enforce the employer mandate
  • Show who has been offered coverage
  • Form 1094C; ALE’s transmittal to the IRS
  • Form 1095C; ALE’s notice to the employee

ACA Compliance Deadlines (covering plan year 2015)

  • For ALEs, the Forms 1095-C must be provided to each full-time employee no later than February 1, 2016.
  • ALEs must file Form 1094-C and Form 1095-C for each employee with the IRS for the 2015 calendar year no later than February 29, 2016.
  • The required IRS forms must contain dates tracked month-to month in 2015, detailing the employee’s hours worked as well as his or her access to employer provided health care and employee contributions to employer provided health care.

Updated ACA Deadlines: issued 12/28/2015

ACA Reporting deadlines have been pushed back several months.  1095-C deadline has moved from February 1, 2016 to March 31st 2016; Form 1094-C from February 29, 2016, to May 31, 2016, if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

Note: Employers with 50-99 FTE’s also need to file these forms for 2015, but were not required to offer health insurance until 2016.

MassPay Can Help Make ACA Compliance Easy

As you can see, it’s critical that you keep all of your workforce data in one location, making it easy to track critical employee and dependent data needed for required ACA reporting:

  • Required identifying information
  • Availability of required coverage
  • Waivers of available coverage
  • Affordability of plans

iSolved HCM is a cloud-based Human Capital Management (HCM) solution that helps you determine your ALE status and the maximum waiting periods for medical enrollments, in addition to running applicable self-funded or fully insured reports. iSolved also provides appropriate filing for companies that fall under the exception reporting for this year.

If you’re curious about the potential penalties due to the non-affordability of offered plans, iSolved can also show you proactive estimates.

iSolved HCM makes adhering to ACA requirements easier and more efficient, and it’s supported by our expert staff. iSolved makes sure you have all of the necessary data collection, forms and procedures so you don’t lose sight of vital compliance issues and deadlines.

Free Information on ACA Compliance

ACA Compliance Timetable

ACA Compliance Reporting in iSolved HCM

ACA Maze whitepaper

Request our ACA Compliance Whitepaper – The Affordable Care Act: An Employers Guide to the Maze

If you’d like to learn how iSolved HCM can help you with ACA compliance, and manage your HR, Payroll and Time & Attendance processes, call us at  us at 978-998-6896.

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