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Integrity Data

The Heat Is On: ACA Is No Myth for Some Small U.S. Businesses


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The clock is ticking, with the first deadline for new Affordable Care Act forms just weeks away. You may be confused about exactly what all the ACA buzz means for you.

Here you may be coasting along and thinking: “This isn’t my issue; I have just 25 full-time employees and a handful of part-timers. I even added part-timers just so I wouldn’t be required to give health benefits. I am *far* from the 50 FTE threshold I keep hearing about!”

Well, that may be true, but you still could be an “Applicable Large Employer” – ALE for short – that has to comply with the ACA.

Here’s how:

If, in the previous calendar year, your business met IRS rules for companies that are related in a certain way – and the total head count of all these related companies in that year was 50 or more – then you’re an ALE member of an ALE Group. Now, how do you know if you are in a group of companies that needs to check their combined head count?

  • Are there common owners?
  • Do the companies provide services to one another?
  • Do these companies jointly provide services to others?

IRS Controlled Group Rules_Integrity Data ACA Compliance

 

Should your answer be “yes” to any of the above questions, tune in to a short educational video using Santa (and what we imagine are his U.S. companies) as an example: Confused about whether you Company Has to Comply with the Affordable Care? Santa Is Trying to Figure This Out, Too! This video also addresses exclusions that can be taken from an individual company’s ALE head count that may bring the combined head count under the 50 threshold.

When these considerations apply to your business, be aware that:

  • IRS penalties are steep: $500 per required return if you don’t file.
  • Time to get ready is running out: 1095-C forms are due to employees February 1, the same day as W-2s.

If – based on all this – you have determined that you are an ALE, it’s time to act if you haven’t already.

So, what’s your next step?

Integrity Data has a simple ACA tracking and reporting solution that can help, no matter what payroll or ERP system your business uses. There is still time to implement this solution and get on the right track to ACA compliance. Sign up for a webinar here.

By Integrity Data, an ACA compliance vendor still taking orders

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