Affordable Care Act Reporting and Compliance
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. The following is summarized from the ACA Times. We hope you find this information useful.
“The recent failure in the U.S. Senate vote to repeal the Affordable Care Act (ACA) leaves in place the ACA’s employer mandate. The employer mandate applies to businesses with 50 or more full-time or full-time equivalent employees, referred to as Applicable Large Employers (ALEs). As Congress was debating and ultimately failing to repeal the ACA, the IRS was moving forward with its plans to enforce the ACA and preparing for mandated information filings of 2017 tax year information in 2018.
At this stage, it’s difficult to say how many ALEs are out of compliance with the ACA. A nationwide survey of businesses conducted in 2016 by Zywave, a software provider for insurance brokers and financial planners, might provide some insights.
The study found just over a third of employers surveyed didn’t know what ACA information was needed to be reported to the IRS. Less than 50 percent of those responding to the survey were confident in their ability to satisfy ACA reporting requirements, another 45% were somewhat confident, and 6% were not confident. ‘Many employers are confused about what information needs to be reported and how to accurately submit this information,’ stated the survey.
So how should this be interpreted? When it comes to the ACA, there are still employers who are admittedly clueless on what is required. There remains a knowledge gap on the importance of information reporting as it pertains to the ACA and its enforcement by the IRS. Should your company fall into the ‘unsure’ category, run, don’t walk, to find an expert in ACA mandates and IRS reporting requirements. It will save you money down the road.”