As the teacher, you look first at their tests and see that both students are passing every test. You scratch your head and wonder why one is failing. As you research further, you realize that the failing student isn’t turning in the work and is only showing up for the tests. Their grade is getting penalized because of the lack of work being turned in.
What does this scenario have to do with Affordable Care Act (ACA) and employer compliance?
The failing student is the
For actual compliance with the ACA employer mandate, employers have to comply with the coverage mandate; that is, offer health insurance of a certain standard to full-time employees and document, for employees and the IRS, exactly what was offered.
So, going back to our example, employers must be aware that they are required to show the teacher (the IRS) all the homework they did – even when they are acing test after test.
By not compiling and finding ways to process the information needed to create the detailed reports that are required for a passing grade in the IRS class room, you are setting yourself up for more than failing a class: Your company is looking at accruing steep monetary penalties of $500 per required return.
Is that really a cost you want to absorb?
So let’s start looking at what it takes to prepare for an A grade for ACA reporting compliance. You must take a look at your employee’s hours – not just hours of work on the job, but their overall hours of service to the company. Factors that need to be taken into consideration when compiling employees’ service hours include jury duty, military duty and FMLA absences, just to name a few. These hours must be documented on a monthly basis for all employees – hourly and salaried. What you also need to account for monthly are attributes of the coverage you offer.
This type of detailed reporting is not something you can just compile on a spreadsheet. To assure that all the required data is captured and processed accurately, you need automation.
Don’t push this homework assignment down the road! Your due date for the 1095-C (the IRS form that needs to go to your employees) is
To learn more about trusted, easy-to-use and quick-to-implement software that has your back for this new IRS reporting, attend our next introductory
by Integrity Data