The Reality of ACA Reporting Sets In…
The reality of ACA reporting sets in… Over the summer, the IRS published the first drafts of the Affordable Care Act (ACA) reporting forms – and draft instructions – for “applicable large” employers (ALEs) – those with 50 or more full-time employees (FT), including “full-time equivalent” employees (FTEs). If your company is an ALE, then beginning in 2015 you must gather data showing whether or not you made group health coverage available to full-time employees (those working at least 30 hours per week). Similar to Form W-2 duties, early in 2016 you must prepare individual statements on coverage and furnish them to full-time employees, then transmit the individual statements to the IRS under a separate transmittal form. These duties are set forth in Section 6056 of the Internal Revenue Code (“Code”), added by the ACA. Employers with self-insured group health plans must provide additional information under Code § 6055 but will use the same set of forms used for reporting under Code Section 6056.
Health Care Reform Digest spells out the 6056 and 6055 requirements quite succinctly in an article titled, IRS Publishes Form Drafts for New ACA Employer Reporting Requirement:
Code 6056 requires applicable large employers to file a transmittal with the IRS (Form 1094-C) and provide a new return to employees (Form 1095-C) in January 2016 for the 2015 calendar year. This reporting requirement has a triple purpose, as it is designed to allow the IRS to enforce the employer mandate, enforce the individual mandate, and confirm eligibility for premium tax credits for coverage purchased through an Exchange.
According to EBN.BenefitNews, 6055 is, simply stated:
6055: Employees and dependents covered under the health plan; their name, address, Social Security number and a list of the specific months where they were covered at least one day.
As usual, Bridgeport Benefits is here for you as a resource. We can be a valuable ally for you now as the reality of the ACA sets in. Our payroll vendor relationships—many of them built over many years of proven excellence and solid experience— are an invaluable bonus for you. Read more to see how partnering with Bridgeport Benefits for your group benefits, also means we can direct you to the best payroll companies for your compliance needs – a super ‘benefit’ as we approach the ACA deadlines.
How Did We Get Here? Who is an Applicable LARGE Employer?
In early 2014, the White House extended the Obamacare coverage deadlines for some business owners. Forbes at that time published the changes and quoted the U.S. Treasury Department guidelines which are worth repeating now. In case your eyes have glazed over, we will be providing updates as the barrage of information is indeed overwhelming. Undoubtedly the extensions may have resulted in some employers becoming a bit complacent, so let’s recap. In case you have forgotten, generally only employers with 100 or more full-time employees, including FTEs, must satisfy “pay or play” duties beginning in 2015. Employers with 50-99 FT/FTEs can qualify for an additional year’s extension on pay or play duties, but whether or not you have to “pay or play” in 2015 the reporting duties begin in 2015 – right around the corner. It is due March 31st, 2015!
Bridgeport Benefits: Vendor Relationships Count
Bridgeport Benefits is ready to be a resource for all of our clients as we approach this fast moving deadline. While we are not a payroll company, we have premiere relationships with payroll vendors such as ADP, Paychex, Paylocity and many other top payroll companies, to help clients get on track.
We can assess your readiness and incorporate your plan into an overall benefits strategy. If you choose to utilize Bridgeport Benefits as your group benefits broker, our relationships with payroll vendors can be a significant resource for you during this crucial deadline window. A trusted partner, notably we didn’t only begin developing vendor partnerships at the start of health care reform. We have a proven track record with these vendors for over 20 years!
And the biggest benefit to you may be your time…
Our payroll relationships include dedicated reps, priority response times, and huge time saving benefits. Payroll companies, can be, more often than not, a maze of departments and long wait times. Bridgeport can help eliminate the wait and get our clients priority with their existing or new vendor.
If you are a small to large size business owner wondering how you will manage compliance, ACA affordability, and reporting accuracy, we can help steer you in the right direction. Remember, the IRS will dole out penalties for those that turn in erroneous reports or are found to be in non-compliance.
Let us help manage your benefits and get you partnered with the right payroll companies for you so you remain in full compliance as you venture into uncharted waters. Contact, Bridgeport Benefits—your ACA resource and ‘Bright Choice’ broker—today for more information.