It feels like the year of penalties for employers this tax season, primarily those classified by the ACA for an Applicable Large Employer (50+ full-time equivalents). This is due largely to the new mandates requiring ALEs to report information about their employees’ access to health coverage within their respective companies. Penalties can pop up in a few ways: from filing past deadlines to offering health coverage that’s either not qualified as minimum essential coverage and other requirements or simply not offering health care at all. ACA compliance is a relatively new phenomenon, considering as the Affordable Care Act progresses, new instructions for health care emerge. This tax season was proof that there are still some growing pains. So as an employer, how do you dodge the flying penalties. Well, you can always appeal the notice you receive from the Marketplace and/or Appeal in an IRS audit. However, it’s better to not work backwards and be proactive. The way? Conduct an ACA Audit to determine compliance.
As an employer, this all may feel like new territory. Perhaps you offered health care coverage in the past, but never had to report on who took it, who declined it, and was it up to snuff. Maybe your coverage offers are multi-tiered. For one, if you have an employee whose status shifts at some point from full-time to part-time (or vice versa), then they may be required to be offered coverage for those full-time periods. Said coverage must be available at the correct times.
This can be confusing and daunting. However, First Capitol Consulting has developed an Out Think Risk Tool. This tool provides a questionnaire for employers regarding information about their company’s health care practices. The result is a quick audit to determine ACA compliance. By answering a few questions, you may be able to determine where you stand and if necessary changes need to be made before penalties ensue. To analyze your company’s ACA compliance, click here.