Tempted to Forgo the ACA Reporting Requirements?
Understood. Particularly with the uncertainty surrounding the upcoming new administration under President-Elect Trump, the idea of dismissing the requirements may sound appealing.
But despite the future of the Affordable Care Act (ACA) being unknown, it is best to stay the course and continue with obligations under the ACA. While it is possible that we will see pieces of the ACA start to diminish as early as 2017, lack of compliance with the reporting requirements can result in substantial daily financial penalties.
Under the Internal Revenue Code (IRC) Sections 6055 and 6056 reporting rules, certain employers must provide information to the IRS and their employees about the health plan coverage they offer (or do not offer) to their employees. The requirements vary based on an employer’s size. Most of the reporting requirements apply to Applicable Large Employers (ALEs) with 50+ full time and full time equivalent employees. However, small employers with self or level funded medical plans also have obligations concerning this.
Please see the below resources for assistance.
- IRS Guidelines – Assistance in determining employer size, including information on aggregated employers
- ACA Reporting Chart– Outlines requirements by employer size as well as important deadlines that are quickly approaching
- Employer’s Guide to ACA Reporting– Details concerning the requirements and applicable coding for the forms
If this applies to your organization, please don’t delay and make sure you have procedures in place to fulfill the requirements and meet the deadlines.
Stay tuned for what 2017 may bring.