Do you have to comply?

Transcription

1 isolved ACA The reporting reqirements that the Affordable Care Act (ACA) imposed were difficlt for many employers to meet. If yor ACA process last year didn t go as smoothly as it cold have, now is the time to look for a better soltion. Employers that do not have a soltion for collecting and managing the necessary employee and benefit data to satisfy Section 6055 and 6056 reporting reqirements rn a significant risk for incrring reporting penalties and ACA excise taxes.

2 Do yo have to comply? Companies that employ 50 or more fll-time eqivalent employees are defined as an Applicable Large Employer (ALE). The employer mandate reqires all ALEs to offer minimm essential coverage that is both affordable (9.66 percent of the mainline single Federal Poverty Line) and provides minimm vale (policy pays 60 percent of the costs) or face a penalty called the Assessable Payment (play or pay). This coverage mst be offered to all fll-time (FT, defined by total hors of service) employees and is determined by sing either a monthly or look-back measrement period. If ALEs offer FT employees coverage deemed naffordable (at least 9.66 percent of the mainline single Federal Poverty Line divided by 12 for the least expensive employee-only, compliant plan) or doesn t provide minimm vale (the plan s share of total cost of benefits nder the plan is less than 60 percent), the employers may face a penalty of $3,240 times the nmber of FT employees receiving a sbsidy for exchange coverage. Employers who file incorrect forms may be sbject to a fine of $50 per form p to $529k annally.

3 In order to meet the 2016 reporting reqirements, employers shold already be compiling and analyzing data now to determine coverage and affordability. Reqired data collection incldes: Aggregate grop membership tracking Total employees Total FT employees Total months covered Whether minimm essential coverage was offered, is affordable and meets minimm vale Employee information inclding Social Secrity Nmbers or birth dates Filing ALEs mst file Form 1094-C to the IRS with data on: Total employees and fll-time employees If minimm essential coverage was offered Designate 4980H transition relief ALEs mst file Form 1095-C with the IRS and provide a copy to each flltime employee. The form incldes information on: Types of coverage offered to employees and their eligible dependents Lists employee share of the lowest cost monthly premim Any applicable safe harbor codes List of covered family members if plan is self-insred Important dates The applicable 1094 and 1095 forms mst be provided to employees by Janary 31 and filed with the IRS by Febrary 28 (paper filing) or March 31 (electronic filing). The IRS will se these forms to determine employer shared responsibility and affordable minimm essential coverage, so having data accrate and readily available is critical.

4 Yor compliance made easy Don t wait any longer to make yor move to comply with ACA reqirements. Remember to consider all of the factors and minimize yor compliance risks. isolved ACA Reporting is a robst soltion that can keep yo in compliance: ALE test to calclate FTEs and determine ALE stats Look-back reporting identifies changes in employee ACA stats and benefit eligibility Affordability report determines if health benefits are considered affordable based on ACA safe harbors Projection tools to estimate new minimm essential coverage affordability Data: Aggregate grop membership, minimm essential coverage, minimm vale, captre employee ACA stats, benefit eligibility and offers of coverage Draft versions: ACA annal forms available to rn on demand for pre-filing verification Broker Workbench allows brokers to help manage their cstomer s plans Update options: Cstomers can make identified pdates or we can assist in making any identified pdates to employee, dependent or benefit data Override screens: Access to manally pdate the indicator codes for employee benefit offer and coverage on the 1095-C, Part II Annal 1095-C: Employee forms prodced and delivered to cstomer, visible to employees via ESS Assessment: A detailed ACA evalation of the crrent isolved configration and employee data to determine ability to prodce and file the applicable annal forms, reviewed by an SPHR certified professional Forms: Prodce and file applicable 1094 and 1095 forms

5 ACA compliance is critical to avoid fines and penalties. isolved hoses all yor data dates, employee stats and more - in a single sorce and can prodce reports for yor ACA compliance. Accrate workforce data is vital to yor compliance. Healthcare.gov Additional resorces IRS Q&A on Employer Shared Responsibility Treasry Department ACA Employer Shared Responsibility Fact Sheet The U.S. Small Bsiness Association website Health Care section that lists the dates and times of free, weekly Affordable Care Act 101 Webinars for Small Employers.