100 Plus Employers Need To Be On Alert As IRS Releases Report About Responsibilities Of Employers Under ACA

When the IRS releases a report about the responsibilities of employers under the Affordable Care Act, Pontrelli, Timour & Associates feels the need to raise a red flag.  As a group benefits leader providing Southern California companies with healthcare solutions, PT Benefits wants employers to know that the end of 2014 signals a time to take action. If you are an employer, the number of employees in your business will affect what you need to know about the Affordable Care Act (ACA).

IRS Warns Companies With 100 Plus Employees

affordable care act, aca, 100 plus employers, Obamacare

100 Plus Employers

If you have at 100 full-time and full-time equivalent employees, providing affordable healthcare for your employees is no longer a choice. In the report, the IRS warns that the employer shared responsibility payment will be significant. This payment will happen, even if only one of your employees applies for and receives a subsidy or premium tax credit through a marketplace enrollment.

Moreover, starting in 2016, your company must report to the IRS information about the health care coverage, if any, you offered to your full-time employees for calendar year 2015. You also must furnish related statements to their full-time employees. As a direct result, such reports need to be developed and executed in 2015. As a full-services benefits solutions provider, Pontrelli, Timour & Associates will help advise our clients with resources to comply with these reporting requirements.

100 Plus Employers Employer Shared Responsibility

Although the IRS will not assess employer shared responsibility payments in 2014, this does not mean that you can sit on your hands and ignore the needs of your company. It is true that information reporting related to the employer shared responsibility provisions is voluntary in 2014. After 2014, employer shared responsibility payments will be assessed to companies with 100 plus employees and reporting will be required.

In addition, the employer shared responsibility provisions will be phased in for smaller ALEs from 2015 to 2016.  An ALE is an acronym that stands for Applicable Large Employer, meaning an employer that has 50 or more full time equivalent employees. As a result, although the immediate pressure is on 100 plus companies, 50 plus companies will be squeezed by the IRS as well.

ALEs Of All Sizes Are Ultimately Vulnerable

Specifically, ALEs that meet certain conditions regarding maintenance of workforce size and coverage in 2014 are not subject to the employer shared responsibility provision for 2015.  For 50 plus employers, no employer shared responsibility payment will apply in 2015.  50 plus employers are required to meet the information reporting requirements for 2015.  Despite this breather for 50 plus companies, the IRS wants to make it clear that such employers will be put under the microscope and fined in the future.

The reason Pontrelli, Timour & Associates is waving a red flag and raising the alarm is because too many ALEs and 100 plus employee companies have been avoiding dealing with the Affordable Care Act. What these companies need to realize is that the IRS is in charge of enforcing many of the statutes of the Affordable Care Act. The last thing you want is to place your company under an IRS microscope. If you can avoid dealing with the Internal Revenue Service, this is a good path to take, but you need to take action now.

Pontrelli, Timour & Associates Can Help

For information about and help with the Affordable Care Act and the employer responsibilities outlined by the IRS, please contact Pontrelli, Timour & Associates today. Our goal is to help our clients offer a robust employee benefits program that employees value, while respecting the organization’s budget, and keeping them in compliance.  To learn more about how we can help 100 plus employers and other ALEs, please call Pontrelli, Timour & Associates in Pasadena at 626-795-4138.

Chris Pontrelli

About 

Principal at Pontrelli, Timour & Associates, Inc.

A California native of Pasadena, Chris Pontrelli received his Health & Insurance License from the California Department of Insurance in 1993. After working at Banker’s Trust in their 401k administration division, Chris Pontrelli set-up a desk in his father’s insurance office and built his group insurance business from the ground up. Chris Pontrelli teamed-up with childhood friend Raphy Timour to form Pontrelli, Timour & Associates, Inc. in 2003.

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