aca – are you ready?
Under the ACA, Applicable Large Employers (employers with 50 or more Full‐Time Equivalent employees (FTEs)) are required to offer their Full‐Time Employees and their dependents health care coverage, or pay a penalty. This requirement is known as the Employer Shared Responsibility (or “play or pay”) Mandate. The Employer Shared Responsibility Mandate is effective for Applicable Large Employers with 100 or more FTEs beginning January 1, 2015.
Smaller employers with 50‐99 FTEs receive transitional relief until January 1, 2016. To administer compliance, the IRS has imposed new information reporting requirements under Internal Revenue Code sections 6055 and 6056. While reporting is annual, the employee information and plan details reported on the forms must be captured monthly.
Employer filing Requirements
Form(s) to be filed: 1095‐C and 1094-C
To provide evidence to employees and the IRS that the employer has offered affordable “minimum essential” health care coverage to its Full‐Time Employees.
Starting in 2016 – then annually to employees by January 31st. Employees with > 250 FTEs must electronically file copies with the IRS and submit a transmittal Form 1094‐C by March 31st.
Information may be required to be disclosed
Number of FTEs for each month during the calendar year.
Identifying information for each FTE, including name, address, and taxpayer identification number/social security number.
Certification by month that FTEs were given opportunity to enroll in a “minimum essential coverage plan.”
Monthly information about plan coverage, including employee’s share of cost.
Valiant offers two solutions to ensure your compliance with the Affordable Care Act.
Our enhanced solution provides the most complete ACA coverage. A fully integrated system that addresses the need for monthly tracking, reporting, and annual filing.
For those clients that are choose to handle ACA compliance in-house or with a third party vendor, Valiant provides standard reports, custom alerts, and a standard export file.
You may choose either solution based on your business requirements and the level of service you desire. Valiant has a solution to fit your Affordable Care Act needs.