Smart Benefits: ACA Update - Continue to Comply
Monday, August 06, 2018
- Tracking: ALEs must track employee hours and determine whether they employ an average of at least 50 full-time employees, including full-time equivalent workers.
- Health Insurance Offers: Employers need to give full-time employees the chance to enroll in minimum value, minimum essential coverage that’s affordable.
- Reporting: Employers’ offers of health insurance must be reported to the IRS with Forms 1094-C and 1095-C, which are used to determine if an ALE owes a payment under the shared responsibility provision and whether employees are eligible for the premium tax credit.
- Penalties: If ALEs are responsible for a shared responsibility payment, they’ll receive a letter from the IRS – letter 226J – stating that they’re out of compliance with the employer mandate and listing estimated penalties. Any employer who receives one and doesn’t respond will receive a Notice and Demand for the payment proposed.
Uncertainty persists around the ACA, with multiple legal challenges about the constitutionality of the law. But for now, the majority of the law remains intact so employers should continue to comply with the remaining elements.
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