What to Look For
If your company had an average of more than 50 full-time employees in 2014 or 2015, there are certain Affordable Care Act (ACA) compliance requirements that go into effect for your business in 2016.
The changes brought on by the ACA are a key concern for businesses. You can stay ahead of these somewhat onerous requirements by being proactive now. Given the challenges of complying with the ACA rules and regulations, we recommend that businesses do two things now:
1. Prepare for filing Form 1095-C now for the March 31, 2016 filing deadline. The IRS recently extended the deadline for filing Form 1095-C from January 31 to March 31, 2016, so you still have time to determine if you had an average of more than 50 FTEs in 2014 or 2015, as well as what type of coverages to report, and for whom.
2. Review health insurance costs, coverages and employee eligibility now to determine: 1) what is offered (i.e., does it meet the minimum coverage requirements); 2) how much it costs (i.e., is it affordable); and 3) who is eligible (i.e., are you offering it to enough employees). Missing on just one of these requirements could expose your business to fairly significant penalties.
This approach offers significant benefits. It ensures timely filing of Form 1095-C, with minimal headaches and surprises. It enables your business to remain in compliance with the ACA for 2016 and avoid costly penalties. And finally, it provides valuable information to help you make a “pay or play” decision.
There are many other meaningful ways to stretch your dollar in our new e-book: 12 (More) Great Ideas. Do you have a question about how this information applies to you? Email Jim Sacher, CPA or call him at 440-449-6800.