Whatever your thoughts on the Affordable Care Act, you can not deny its huge impact on the health care industry and Americans in general. Since its implementation in 2010, 16.9 million people have benefited from coverage. Despite the 191 amendments introduced this year to amend the law, the employer's mandate is still in place, and it's important to ensure that HR teams are prepared for the filing of the year of taxation 2017.
1. Meet the deadline
Be prepared to meet the deadline of January 31, 2018. For the 2016 tax forms due in early 2017, employers received two additional months to distribute the necessary forms to employees and three months to file with the IRS, but 2018 will not have the same extensions. The forms must be postmarked by January 31, 2018 and transmitted to the IRS no later than April 2, 2018.
2. Constantly measure
Take measurements consistently throughout the year to avoid penalties and save money. Keeping track of full-time and part-time status is the key to making accurate coverage offers. Not offering coverage on time to a full-time employee can put an employer in a penalty situation. In addition, the coverage can not be terminated on time, which costs the employer thousands of bonuses. Know exactly who you are working for by reviewing classification and eligibility policies, and making sure hiring managers understand these policies when ranking new employees. It is important to be able to clearly identify who is part-time and full-time depending on the scheduled hours and other factors related to the position .
3. Do not Disregard Affordability Change
There is an inflation-adjusted annual change in "affordable" health care . Some employers may need to reduce their employees' share of contributions to maintain affordable coverage.
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Employers with 50 or more employees must offer an affordable plan or a tax penalty. This accessibility is determined by the employee's share of the offered health insurance plan which represents less than 9.69% of the household income for the 2017 plan year. The employer may apply to three employees to determine if the plan offered is affordable and may be used in place of household income:
The W-2 salary of the employee
Employee's rate of pay – hourly wage rate x 130 hours from the first day of the plan year
Federal Individual Level of Poverty – Since the LPF is not officially released until January, employers can use the LPF in effect six months before the start of the plan year.
Once the safe harbor is selected for the year, it must not be changed. It is therefore essential to take into account your demographic profile and check that the chosen option does not create a penalty. a lot of employees.
You may use the same shelter for all employees or you may use multiple Safe Harbor methods, provided that the same method is consistently applied to all employees in a reasonable category.
4. Common traps on 1095 – forms C
Forms should only have the "Corrected" box if they were forwarded to the IRS before the correction. If the correction is made to the form prior to transmission to the IRS, a watermark should be used to indicate that the form is corrected upon submission of the form to an employee.
Only self-insured groups must create forms for part-time employees enrolled in the plan. The carrier must provide a Form 1095-B to all persons covered by a fully insured plan, leaving the employer with no obligation to provide a 1095-C form to a part-time employee covered by the fully insured plan.
The 1G code can only be used if it applies for the 12 months of the year of declarative taxation.
Line 15 is required only if the code 1B, 1C, 1D, 1E, 1J or 1K is in line 14.
Line 15 is the amount that the employee must pay for the plan to the least costly employee – not the amount the employee is actually responsible for when he chooses to cover himself, his spouse and dependents, for example.
If no cost is required for the employee plan only offered the cheapest, then line 15 should be 0.00, not blank, for any month where line 15 is required.
See more information on forms 1095-C Here .
5. What does it mean to "abrogate"
Even though the ACA law is amended, there will probably still be some need for reports. Government agencies are always interested in receiving data on coverage and coverage offering to be able to manage and monitor them, so be vigilant if there is a repeal of changes and new reporting requirements for employers.
The Affordable Care Act is still vulnerable to change, with a strong possibility to be dismantled into pieces. Even if a change is made, the need to follow these data and to remain compliant will exist at least two more years . We will continue to monitor the changes and update the information we have.