The plan to repeal and replace the Obama administration’s Affordable Care Act (ACA) failed to garner enough support among its constituents to be set in motion. As Speaker Paul Ryan said, the ACA will remain “for the foreseeable future.” What does this mean for employers? Proview Global gives you the following reviewers for your ACA refresher.
Since Obamacare is still law, you will now have to check your ACA compliance and see if it continues to comply with ACA standards. Naturally, you, or anyone else, want to avoid any penalties that may result from non-compliance. ACA requirements remain the same, but to refresh your memory, check the following below.
- Applicable large employers (ALEs) still have to comply with the ACA employer mandate. ALEs mean employers with 50 full time equivalents or more.
- You, as an ALE member, have to provide qualifying affordable coverage that covers at least 95% of your full-time employees as well as their children of ages reaching 26.
- Those considered as full-time employees are expected to render 30 or more hours of work per week. For variable employees, the definition translates to an average of 30 or more hours during the look-back period.
- Affordable coverage means the premiums of employees must not go over 9.69% of their taxable wages.
- Non-compliance can mean a $2,160 for each of your full-time employees (minus 30), or every full-time employee receiving a subsidy of $3,240. Your penalty will depend on how much you failed to comply with the employer mandate.
No Room for Mistakes
You can recall more of the standards of ACA through research. To avoid penalties for errors in your reports, you can take a look at the codes for reporting on Form 1095. The 2016 1095-C instructions added two more codes, so you can check those too.
ACA compliance can be a challenge for employers. Fortunately, you can hire ACA management services that can work on your ACA compliance. Outsourced ACA management can free you up for other important responsibilities; it can also ensure all details and documents are correctly in order.