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A Clear Vision On ACA Compliance

Posted on: January 21st, 2015

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ACA vision

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

Can you see what’s coming for employee health care reporting? 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.

Company Size Determination under ACA

Determining if your company is an applicable large employer (ALE) is just one of the ACA requirements for 2015. 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.

Workforce info needed under ACA

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!

Tax Filing Required Under ACA

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

Automation Makes 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

Contact us at 978-998-6896 to learn more about iSolved HCM and how it supports ACA health care compliance.

We also offer free materials, including terminology, ACA timeline, and a white paper, to help you better understand your responsibilities under the law.

Request access to the ACA webinar Request access to our recorded ACA Webinar


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