15 Aug Prepare for New ACA Requirements Before Year End
Staying abreast with the new ACA requirements and how to plan for them can be challenging. Paying special attention to these complex employee classification rules can help avoid costly mistakes. Under the new ACA rules, starting in 2015, businesses with 50 or more employees will have to offer affordable healthcare coverage to any workers averaging 30 or more hours in a given work week or 130 or more hours monthly. Any businesses that do not comply will be required to pay a penalty at the end of the year. It’s important that businesses closely monitor employees’ hours and plan accordingly.
IRS forms 1095-C and 1094-C will need to be filed by employers that are required to offer health insurance coverage to their employees under the ACA. The main difference between these tax forms is that the 1095-C provides information about health insurance and is sent to both the employees and the IRS, while the 1094-C mirrors the same content of the 1095-C and is sent only to the IRS. Payroll companies are charging an additional cost for preparation and filing of these forms. In most cases these forms are being assessed much like W-2’s at a specific cost per employee per year. Don’t wait until the last minute. Start planning today by contacting your payroll provider to factor in these costs before the year ends.
Christina McDonald, Business Development at Resource Alliance.
Christina shares her opinions, not legal advice, about increasing performance and limiting liability.