ACA Compliance Frequently Asked Questions For Employers

ACA compliance is a core ACA-related necessity that every department must master. The Legal team will act as the ultimate compliance specialists. Challenges and appeals to the ACA may prove cumbersome and complicated in large organizations. In addition, they may vary depending on the type of Health Insurance Marketplace and the state where the employer does business. Nonetheless, ACA compliance is essential to protect your organization and employees from legal or financial repercussions.

ACA compliance is a core ACA-related necessity

ACA compliance is a crucial element of the new health care law. The ACA mandate requires employers to offer health insurance coverage to their full-time employees, regardless of age, gender, her status. However, employers were not prepared for the implementation of the law. For example, the transition relief for Applicable Large Employers expired in 2015, and employers were only required to offer health insurance to seventy percent of full-time employees. Moreover, few Marketplaces were releasing their marketplace notices to employers.

Organizations must invest in solutions that will ensure aca compliance group while remaining flexible to address changes in the law. For large organizations, challenges may prove difficult and cumbersome. The appeals process may vary by state and Health Insurance Marketplace. Regardless, ACA compliance is an essential part of the business operation.

It requires affordable health insurance.

Under the Affordable Care Act, large employers are required to offer health insurance coverage to their full-time employees. If they fail to comply, they face financial penalties, including a fine of $2,800 per full-time employee who enrolls in the Marketplace.

To make sure their employees can afford coverage, large employers must provide a self-insurance plan that is at least 60% affordable. The ACA stipulates that if the goal is reasonable, the employee’s share of household income must not exceed 9.61 percent. Additionally, the insurance must cover at least 60% of employee-related health expenses and provide substantial coverage for physician and inpatient care. The rules also stipulate that an employer must offer a certain amount of coverage for each employee’s dependents, children under 26.

It requires ALEs to file returns electronically.

Under ACA compliance, ALEs must file Form 1095-C electronically with the IRS every year. This form reports the monthly health care coverage offered to their full-time employees. In addition, note the lowest employee premium for self-only coverage and the codes affecting ACA Employer Shared Responsibility assessments. The return must be filed electronically on the same day.

As part of ACA compliance, ALEs must file a separate return with the IRS for each full-time employee. They must also furnish a statement to each employee describing the health coverage offered. In some cases, the statement will include indicator codes. The IRS requires this information to verify compliance with the law. In addition, the information contained in return is used to enforce ACA shared responsibility rules. If an ALE fails to provide minimum value coverage and affordable coverage for its full-time employees, it will face penalties under the ACA.

It requires eligible employees.

ACA compliance requires a review of newly-eligible employees to determine eligibility for coverage. The first measurement period starts on the hire date and continues for 12 consecutive months. Employees must track their hours for all active appointments with the University or other State agencies for the standard measurement period. The Human Resource Management department must determine the number of work hours newly-eligible employees should work for ACA compliance. In addition, it should consider the rules governing breaks of service.

Organizations must determine whether a newly-eligible employee is a full-time or part-time employee. The monthly measurement method is for organizations with a predominantly full-time workforce. However, Tommy Joe’s workforce is essentially variable, meaning employees’ hours fluctuate between full-time and part-time status.