INSIGHTS ABOUT HEALTH CARE REFORM

NOV. 29, 2016  

Affordable Care Act: Considerations, Resources and Case Studies
 
While the election results may put a new twist on the Affordable Care Act (ACA), large employers and employers with self-funded insurance plans still have a requirement to file their 2016 1094/1095 forms in a timely manner. The non-deductible penalties for not filing these forms range from $260 to $520 per form.
 
The IRS has extended the deadlines for filing the 1095 forms with recipients and/or employees, but only until March 2, 2017. The deadlines for submitting the forms to the IRS remains unchanged.  This means that employers need to start gathering their information and reconciling employee hours to the insurance offering that was made to each employee. While the forms seem basic at first glance, there are specific rules that tend to be forgotten, such as:
  • The requirement for Applicable Large Employers (ALEs) to offer 95 percent of full-time employees' health insurance in order to use any of the three safe harbors for any employees that waive coverage. This is a rule that is too often overlooked, resulting in inaccurate forms.
     
  • The rule that allows employers who use the lookback measurement method as a way to reclassify a full-time employee who is in his/her stability period as a part-time employee is often overlooked. Typically when an employee has worked full-time hours in the lookback period, they are classified as full-time employees in the following stability period. However, if an employee takes a part-time position in the stability period, they can be classified as a part-time employee on the first day of the fourth month if they average less than 30 hours a month for three prior consecutive full months and they were offered health insurance when they were first hired that met minimum value.
  For more resources and insight about the ACA, click here
  IRS Grants Automatic Extension 2016 Affordable Care Act Forms 1095-B and 1095-C
 
  On Nov. 18, the IRS announced via IRS Notice 2016-70 that it has issued transition relief for filing 2016       ACA Forms 1095-B and 1095-C, which extends the due date from Jan. 31, 2017, to March 2, 2017.

  What does this mean for you? Read here for more information.
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