Navigating the Waters of ACA in 2016

4 ‘Must Knows” for Large Employers

Okay, here we go folks, it’s 2016 and we are floating the down the river of impending paperwork and tax forms. The ACA (Affordable Care Act) is almost 6 years old. Many of the provisions of this monster new law have had great impact on the individual market but not so much on large employers or by definition (applicable large employers, ALE’s).

That my friends is about to change! If your company is an ALE and you are in charge of payroll, the accounting department or even HR these are the very basics of what you need to know.

  1. Your company could be fined if your group health insurance offering doesn’t meet certain criteria: ALEs must either offer minimum essential coverage that is affordable and that provides minimum value to their full-time employees and their dependents, or potentially make an employer shared responsibility (“pay or play”) payment to the IRS.
  2. Your company has some extra paperwork to do: ALEs have annual reporting responsibilities. ALEs will need to provide the IRS and employees with information returns concerning whether and what health insurance the ALE offered to its full-time employees.
  3. Yes, your company still has to do paperwork even if your health insurance plan is self-funded: If an ALE provides self-insured health coverage to its employees, the ALE must file an annual return reporting certain information for each employee covered.
  4. If your company has more than 250 W-2’s to file you will have extra work: An ALE may be required to report the value of the health insurance coverage provided to each employee on his or her Form W-2—but only if the ALE was required to file 250 or more Forms W-2 for the preceeding calendar year.

Still need some clarification and help on this? For more information on which ACA provisions apply to your company, visit the IRS webpage on ACA Tax Provisions for Employers and good luck navigating and watch out for that branch!

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