Now that you have completed your 2015 Form 1095-C reporting for all employees and submitted your 2015 Form 1094-C filing to the IRS, it is time to look at 2016 ACA compliance.
The complete and partial transition relief that was available in 2015 is no longer available in 2016, so you need to be ready.
For your 2016 plan year (taking effect on the first day of your 2016 plan):
The 2015 transition relief for Applicable Large Employers (ALEs) with 50-99 full-time employees and equivalents is gone. All ALEs must comply with the ACA’s employer mandate requirements.
In 2015, ALEs needed to offer health insurance coverage to at least 70 percent of their full-time employees. Starting in 2016, ALEs must offer ACA-compliant coverage to at least 95 percent of their full-time employees to avoid penalties.
In 2015, for ALEs with 100 or more full-time employees, if the ALE did not offer coverage to its full-time employees, the per-employee penalty was calculated after subtracting 80 full-time employees. In 2016, that reduction has been decreased significantly, so only the first 30 will be deducted from the full-time count in calculating the penalties.
Now is the time to review your 2016 ACA compliance, but you don't have to go it alone. If your business needs guidance navigating the complexities of the Affordable Care Act, please don't hesitate to contact us.
Our ACA team's decades of experience in employee benefits, combined with our detailed knowledge of the nuances of ACA legislation, can help to keep your business compliant. We'll perform a rigorous analysis of your company’s benefits offering to identify gaps that could lead to costly fees or fines, and our team of ACA experts will help you identify the most cost-effective path to full and lasting compliance. Simply submit our contact form or call us at (800) 446-6567 to get started.
Since 2015, the Propel HR ACA team has assisted organizations of all sizes with compliance and with financial and strategic issues surrounding the ever-changing ACA requirements. Our in-house professionals are well-versed in the complexities of the Affordable Care Act and are happy to answer your questions, so feel free to comment below!