How to Navigate the ACA Employer Mandate
Download as PPTX, PDF18 likes3,986 views
The employer mandate, part of the Affordable Care Act, requires applicable large employers (ALEs) to provide affordable minimum essential coverage to full-time employees or pay a penalty. Employers subject to this mandate must also comply with reporting requirements, including submitting forms 1094-C and 1095-C to the IRS. The document outlines the definitions of full-time employees, applicable size thresholds, and how BambooHR can assist in managing ACA compliance.
How to Navigate the ACA Employer Mandate
- 2. What is the Employer Mandate? “Employer Shared Responsibility Provision” “Pay or Play Provision”
- 3. Coverage Requirement “Under the Affordable Care Act’s employer shared responsibility provisions, certain employers (ALE’s) must either offer minimum essential coverage that is affordable and that provides minimum value to their full-time employees (and their dependents), or potentially make an employer shared responsibility payment to the IRS.” —IRS.gov
- 4. Provide qualifying health coverage to your full time employees or pay a big fine.
- 5. Reporting Requirement “The same employers that are subject to the employer shared responsibility provisions also have information reporting responsibilities regarding minimum essential coverage offered to employees.” —IRS.gov
- 6. Submit 1095-C and 1094-C forms to the IRS. Provide 1095-C to employees.
- 7. Does it apply to my company? Applicable Large Employer (ALE)
- 8. • Average of 50 or more full-time employees per month • Includes full-time equivalents and seasonal employees • Based on the prior calendar year Definition of ALE
- 9. • Average of 30 or more hours per week (or 130 hours per month) • Full time equivalent = total number of non- full time hours/120 • May not match your company’s definition of full time Definition of full time
- 10. • Sum of full-time employees + equivalents (for the year) / 12 • Round down to the next lowest whole number • New company and seasonal worker exceptions How to calculate
- 11. Transition relief may apply to your company if you had 50-99 employees in 2014.
- 12. How do I report to the IRS? Navigating the 1094-C and 1095-C
- 13. • One per company • Summary of ACA methods (including transition relief) • Monthly % of full time employees who received offer of qualifying coverage 1094-C
- 14. • One per employee - like a W-2 for benefits • Monthly codes based on coverage offered, cost, and safe harbors • Dependents enrollment information (self- insured only) 1095-C
- 15. • Updated deadlines on December 28th • Furnish 1095-C to employees by March 31st • File 1094-C and 1095-C’s to IRS by May 31st (paper filing) or June 30th (e-filing) Deadlines
- 16. How BambooHR can help ACA Features
- 17. We're not ACA consultants, but we are employee data experts, so we like to help where we can.
- 18. Features that will help you with the employer mandate: ACA employment status tracking New benefits tracking ACA benefits and employment status reports Download 1095-C (Part I auto-filled) ACA help article 1. 2. 3. 4. 5.
- 23. Check out our help article for more information and links to official ACA resources.
- 24. Follow BambooHR on social media: bamboohr.com/blog | #bamboohr Thank you!
Editor's Notes
- #14: https://www.irs.gov/pub/irs-pdf/f1094c.pdf
- #15: Safe harbors include how the company calculates affordability, employment status of an employee, when the company’s plans start and end (see the reference material to determine which apply to your company) https://www.irs.gov/instructions/i109495c/ar01.html#d0e1062