Employers have been coming to terms with the implementation of the Affordable Care Act (ACA) for a few years now, but this is the year the rubber meets the road. With the ACA’s shared responsibility provisions in place, employers face a host of new reporting requirements for 2015. Here’s a brief refresher:
ACA Reporting 101
Under the ACA, two new employer reporting requirements have been added to the IRS Code:
- Code 6056 requires applicable large employers to provide an annual statement to each full-time employee detailing the health coverage offered to those employees.
- Code 6055 requires employers that provide minimum essential coverage (MEC) under a self-funded (uninsured) plan to provide an annual statement to all covered employees.
Along with the new reporting requirements come new IRS forms to contend with. All applicable large employers – fully insured, self-insured, and those not offering insurance – must file FORM 1095-C and provide a statement to their full-time employees. Part II of the form tells the IRS what coverage the employer offered (or didn’t offer) to full-time employees and dependents. Part III is used by large self-insured plans instead of Form 1095-B, and gives the IRS information on each covered individual. Employers are required to use transmittal Form 1094-C to file copies of the 1095-C forms with the IRS. Form 1095-C is due January 31, 2016, and Form 1094-C is due February 29, 2016 (March 31, 2016, if filing electronically). For more information, visit Questions and Answers on Reporting of Offers of Health Insurance Coverage by Employers (Section 6056).
The glue that holds it all together? Data – lots of data.
Big data, big headaches
Just think about all of the information you have to keep track of to be compliant, including:
- Aggregate cost of health insurance
- Full-time equivalent (FTE) employee calculation
- Part-time staff
- Health insurance marketplace notices
- Benefit plan enrollment
- Average hours compensated per week
- Healthcare coverage information
Collecting, tracking, analyzing, and integrating all of that data across time and attendance, payroll, HRIS, benefits, and IRS reporting has become a daunting and time intensive task that can bring tears to almost any employer’s eyes. And given the number of potential mistakes and the serious financial consequences for noncompliance, it’s imperative that employers get it right.
The no-tears solution? Automation and integration.
With the complexities of the ACA and the new reporting requirements, you need an integrated system that provides complete automation for managing information and minimizing compliance risks. You need a system that gathers all of the required information on each employee and enrolled dependents, and exports that information into a compatible format to be filed with the IRS and sent to each employee.
In short, you need a simple, convenient, and intuitive system for managing data and staying compliant with the ACA.
At BeaconPath, we’ve partnered with SuiteHR to provide a state-of-the-art solution for those needs. With the ability to integrate payroll, HRIS, time and attendance and benefits eligibility, we can help you simplify your operations, manage information more efficiently, and stay compliant with ACA requirements. That’ll save you time, stress, and money – and wipe those tears away. Contact us to learn more.
Also, download our free guide: “Benefit Measurements: How to Calculate FTEs.” Pay or pay compliance can be tricky, but this guide makes it easier with clear, easy to follow instructions.