Affordable Care Act
The Patient Protection and Affordable Care Act (ACA) is impacting employers across the country in numerous ways. The administrative requirements alone can be overwhelming. Employers are now required to perform a series of complex calculations to determine the size of their business for ACA compliance-purposes, which depending upon their assumptions could expose their business to penalties for failing to provide adequate and affordable coverage to full-time employees. Spreadsheets, reports, and manual calculations do little to simplify a highly complex process with potentially significant financial consequences.
Erigo is uniquely positioned to help you determine how the employer-shared responsibility provision of the ACA will impact your business and will work with you to develop a solution to minimize your ACA compliance risk. In our role as your employment partner, we’ll help you take a proactive approach to developing strategies for managing your workforce to help with ACA compliance and control the potential impact of associated costs by assisting with the following items:
- Compile the data necessary to determine exposure to potential penalties, including determining employer size and tracking average hours worked by full-time and part-time employees.
- Administer benefit eligibility in accordance with ACA requirements based on the analysis of employee data, thus reducing financial penalties associated with non-compliance.
- Report the value of health benefits on Forms W-2.
- Develop and distribute Section 6056 required notices and reporting, including:
- Form 1095-C is a statement disclosing information about the offer of coverage. This form must be furnished to any employee that has been full-time for one or more months of the calendar year. This document must be provided to each employee, just like a W-2.
- Form 1094-C reports to the IRS the offers of health insurance coverage by applicable large employers (ALE) that are subject to the Employer-Shared Responsibility Provisions.
- Provide a healthcare exchange notice to all employees to notify them of the availability of exchange-based coverage.
- Guide clients in understanding different contribution strategies.
- Communicate information to assist clients in making decisions about health-care coverage for their business.
- Provide comprehensive auditing and reporting features that will provide evidence of ACA compliance efforts to government agencies should the need arise.
Risks of Non-Compliance
- To the extent that an applicable large employer fails to offer qualifying coverage to at least 70 percent (95 percent after 2015) of its full-time employees and their children (up to age 26), the employer could be subject to a penalty, generally equal to $2,000 per full-time employee (less the first 80 full-time employees in 2015 or 30 after 2015).
- Even if an employer complies with the requirement to offer coverage, if an employer fails to provide affordable, minimum value, self-only coverage to each full-time employee (and their children up to age 26), the employer generally will be subject to a $3,000 penalty for each employee who then goes and enrolls in exchange-based coverage and receives a federal premium subsidy or cost-sharing reduction.
Partner with Erigo so that we can help you avoid costly penalties for failure to comply with the complex provisions associated with the Affordable Care Act. We’re here to help you work through this process that has many employers confused, frustrated, and most importantly - exposed to significant financial risk.