In 2015, the ACA act requires all employers with over 100 FTE’s to submit the 1095-C form to the IRS, guaranteeing the business offered affordable health care to all eligible employees. In 2016, this becomes a requirement for all companies with 50 or more employees.
The businesses with the highest risk for penalties are those with many part-time employees, seasonal employees or low-wage employees. Every employee whose hours of service (not hours of work) total 130 in any one month of a calendar year qualify for affordable health care and businesses must provide documentation in the Form 1095-C about these employees. Hours of service include the following circumstances, even if the employee is not compensated at that time: vacation, holiday, illness, incapacity, layoff, jury duty, military duty, leave of absence or FMLA.
So how do you safeguard yourself from paying the IRS? The HR module in Microsoft Dynamics GP now includes a checkbox where you can track who does and does not have health insurance. If you’re an at-risk business, that isn’t enough information to keep your company in the clear.
Sypnio provides a vital add-on product to
Once you have accurate information about who is eligible, you can better assess the affordability of your health care coverage. The best way to determine if your coverage is “affordable” is through the Rate of Pay Safe Harbor. In this safe harbor, you take the lowest wage you’re paying a full time employee and multiply that by 130 hours. Then you multiply the result by 9.516 percent. Your answer is the most amount of money out of pocket that your full time employee can pay for health coverage.
Once you have offered affordable care to each employee, you can track in the Sypnio module within Microsoft Dynamics GP whether your employee chose to take the coverage and also track waiver codes for those who didn’t accept coverage because of refusal, on parent’s insurance, have other insurance, spousal insurance, etc.
The Sypnio ACA module integrates seamlessly with Microsoft Dynamics GP and is sure to save your company enormous amounts of time on tracking this information and save you possible penalty dollars if your tracking isn’t accurate.
We’re recommending that our at-risk customers seriously look at investing in the capabilities of Sypnio Software to help them get the most accurate and efficient reports for ACA tracking. Find out more about this add-on feature including additional capabilities and cost by
by DFC Consultants