How to Navigate the ACA Employer Mandate

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Transcript of How to Navigate the ACA Employer Mandate

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What is theEmployer Mandate?“Employer Shared Responsibility Provision”

“Pay or Play Provision”

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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

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Provide qualifying health coverage to your

full time employees or pay a big fine.

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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

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Submit 1095-C and 1094-C forms to the IRS.

Provide 1095-C to employees.

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Does it apply to my company? Applicable Large Employer (ALE)

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• 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

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• 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

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• 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

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Transition relief may apply to your company if you had 50-99 employees in 2014.

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How do I report to the IRS? Navigating the 1094-C and 1095-C

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• One per company

• Summary of ACA methods (including transition relief)

• Monthly % of full time employees who received offer of qualifying coverage

1094-C

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• 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

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• 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

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How BambooHR can help ACA Features

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We're not ACA consultants, but we are employee data experts, so we like to help

where we can.

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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

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Check out our help article for more

information and links to official ACA resources.

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Follow BambooHR on social media:

bamboohr.com/blog | #bamboohr

Thank you!

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