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ACA compliance is critical to avoid fines and penalties. iSolved houses all your data – dates, employee status and more – in a single source and can produce reports for your ACA compliance. Accurate workforce data is vital to your compliance.

Do you have to comply

Companies that employ 50 or more full-time equivalent employees are defined as an Applicable Large Employer (ALE). The employer mandate requires all ALEs to offer minimum essential coverage that is both affordable (9.5 percent income) and provides minimum value (policy pays 60 percent of the costs) or face a penalty called the Assessable Payment (play or pay). This coverage must be offered to all full-time (FT, defined by total hours of service) employees and is determined by using either a monthly or look-back measurement period. The employer mandate applies to ALEs of 100 or more in 2015 and 50 or more in 2016. If ALEs offer FT employees coverage deemed unaffordable (at least 9.5 percent of the employee’s income for the least expensive employee-only, compliant plan) or doesn’t provide minimum value (the plan’s share of total cost of benefits under the plan is less than 60 percent), the employers may face a penalty of $3,000 times the number of FT receiving a subsidy for exchange coverage. Employers who file incorrect forms may be subject to a fine of $50 per form up to $250k annually.

In order to meet the 2016 reporting requirements, employers should already be compiling and analyzing data now to determine coverage and affordability. Required data collection includes:

 ALEs must file Form 1094-C to the IRS with data on:

• Total employees and full-time employees
• If minimum essential coverage was offered
• Designate 4980H transition relief

  • Aggregate group membership tracking
  • Total employees
  • Total FT employees
  • Total months covered
  • Whether minimum essential coverage was offered, is affordable and meets minimum value
  • Employee information including Social Security Numbers or birth dates

It’s estimated that up to 90% of employers are not prepared to meet the significant reporting requirements the Affordable Care Act (ACA) has imposed. Employers that do not have a solution for collecting and managing the necessary employee and benefit data to satisfy Section 6055 and 6056 reporting requirements run a significant risk for incurring reporting penalties and ACA excise taxes.

Filing

ALEs must file Form 1094-C to the IRS with data on:

• Total employees and full-time employees
• If minimum essential coverage was offered
• Designate 4980H transition relief

ALEs must file Form 1095-C with the IRS and provide a copy to each full-time employee. The form includes information on:

• Types of coverage offered to employees and their eligible dependents
• Lists employee share of the lowest cost monthly premium
• Any applicable safe harbor codes
• List of covered family members if plan is self-insured

Important Dates

The applicable 1094 and 1095 forms must be provided to employees by March 31 and filed with the IRS by May 31 (paper filing) or June 30 (electronic filing). The IRS will use these forms to determine employer shared responsibility and affordable minimum essential coverage, so having data accurate and readily available is critical.

One Solution to Stay in Compliance

Don’t wait any longer to make your move to comply with ACA requirements. Remember to consider all of the factors and minimize your compliance risks.

iSolved ACA Reporting is a robust solution that can keep you in compliance:
Stay in Compliance

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