Total Team Solutions Blog
| Nov 11 2015 |
Affordable Care Act 2016
By: Rob Lynn
Since the Affordable Care Act (ACA) was signed into law in 2010, there have been many employers confused about deadlines, what needs to be reported and what the overall impact of ACA will be on their business.
As 2016 is right around the corner, it is important for businesses to become better informed as to what the New Year will require.
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Depending on the number of employees, businesses will be responsible for not only providing affordable medical insurance options, but they will also need to track employee hours and submit additional government reporting. Tracking this information is important as it will determine if your company is subject to Employer Shared Responsibility Mandate.
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Determine if your business is considered a “large employer” by calculating the number of full-time employees. This calculation is done by figuring the number of full-time equivalent and adding that number to actual full time employees. Figuring out full-time equivalent is accomplished by adding all part-time hours for the month and dividing that number by 120. If the full-time employees plus the full-time equivalent number is greater than 50, the business is considered a "large employer" for the purpose the Employer Shared Responsibility Mandate.
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Best administrative practice for the employer would be to continually track employee hours each month after the initial determination to figure out if total counts exceeds 50 (full time plus full time equivalent) and/or if employees become eligible for health insurance based on their average hours. Keep these records for end of year tax reporting.
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For those employers that exceed 50 employees, they must offer a medical plan that provides minimum essential coverage. Additionally, the coverage needs to be affordable and provide minimum value based on specific criteria.If either of these conditions is not met, the employer faces potential financial penalties.
The Affordable Care Act is complicated and time-consuming for businesses. For more information about how Total Team Solutions handles client compliance with the ever-changing regulatory requirements, please contact us at info@ttspro.com or call Rob Lynn at 203-459-1777 ext.6
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