Health insurance has taken center stage in recent years as savvy employers recognize this benefit as a necessary component to attracting and retaining top talent. However most companies continue to see 15-25% increases year over year, a trend that will be impossible to sustain if it continues. In conjunction with health benefits, compliance reporting is still mandatory. A recent IRS notice stated “…the legislative provisions of the ACA are still in force until changed by the Congress, and taxpayers remain required to follow the law…” That notice also included a reminder that “…Section 4980H of the Internal Revenue Code provides that if an applicable large employer (generally, an employer with at least 50 full-time employees, including full-time equivalent employees, on business days in the preceding calendar year) fails to offer health coverage to its full-time employees, and if the other conditions in the statute are met, the employer is liable under the statute for the ESRP. There is no provision in the statute that provides for the waiver of an ESRP (Employer Shared Responsibility Payment).”
To visit the ACA Information Center for Applicable Large Employers (ALE), click here.
Although we all thought the ACA reporting requirements and penalties would go away, the IRS has been actively reminding employers that it is still very much in force. What does this mean for you as an employer? It means that eligibility tracking for each of your employees throughout the year as well as the 1094/1095 year-end forms are still required. This process creates a huge drain on internal assets as it requires a significant amount of time and resources to complete correctly. Perhaps you have considered outsourcing these duties this year?
At Solution Services, all the tracking, notifications, and reporting are included in our suite of strategic HR services.
If you would like to learn more about how you can outsource the administrative burden associated with ACA compliance as well as a host of other HR tasks including reducing your employer liability, contact SSI today for a complimentary HR Risk Evaluation. You can also visit this link to learn more about the advantages of partnering with Solution Services.