Midsized Employers Are Worried About Ongoing ACA Compliance Challenges

The Affordable Care Act and resulting ACA compliance challenges can be a tough labyrinth for employers to navigate. As an insurance agency focusing on group benefits management, Pontrelli, Timour & Associates understand the frustration of employers as they attempt to deal with the seemingly never-ending ACA compliance challenges. By focusing on compliance issues, business owners fail to do what they do best and really need to be doing – growing their bottom line. Luckily, PT Benefits can help your company overcome these difficulties, taking away unnecessary bureaucratic headaches.

Keeping Up With ACA Compliance Challenges

aca compliance challenges

Help with ACA Compliance Challenges

It’s hard to keep up with evolving regulations around the Affordable Care Act. As a result, employers are increasingly stressed about the volume of government regulation that often lead to fines and penalties for noncompliance. When it comes to senior level and C-suite executives at U.S. companies with 50-999 employees, two in five ranked the amount of government regulations as their top business concern in 2015. This is a significant spike when compared to previous years.

Business owners have less confidence in compliance with ACA regulations as compared to payroll tax laws and workforce regulations. When it comes to ACA compliance challenges, there are steps you can take to help your company avoid problems.

Three Basic ACA Compliance Steps That Can Help

  1. Seek expert help. Recognize that ACA compliance is not a one-time investment, but an ongoing journey. Trying to solve compliance challenges with only internal resources can sometimes end up costing more than working with an experienced Insurance Agency like PT Benefits.
  1. Take inventory of your current benefits plans and employee insurance offerings. Employing manual processes can increase the risk that critical information needed to deal with ACA compliance challenges is not being tracked. If you had trouble during your last ACA reporting cycle, you are likely to have trouble again. By working with PT Benefits, the manual processes are replaced by a well-oiled group benefits machine.
  1. Access quality ongoing service options. If getting a handle on the alphabet soup of regulations that go hand-in-hand with the Affordable Care Act, work with an experienced insurance agency that can provide ongoing service. There is no need to continue what seems to be an exercise in futility, By seeking the help of certified and trained ACA compliance experts, you not only can avoid penalties, you also can offer better employee benefits programs and improve employee morale.

PT Benefits Overcomes ACA Compliance Challenges

To learn more about how Pontrelli, Timour, & Associates can provide the help you need to overcome ACA compliance challenges, please pick up the phone and take the first step. By calling (626) 795-4138 and speaking with one of our group benefits managers, you can access the help you need today.

Six Things Applicable Large Employers (ALEs) Need To Know About Information Reporting and Health Coverage Offers

Applicable Large Employers (ALEs) are generally those employers with 50 or more full-time employees, including full-time equivalent employees in the preceding calendar year. If you are an applicable large employer, did you know the Affordable Care Act requires your company to file data returns that report information with the IRS and with your employees as well? Under the Affordable Care Act, not only are you responsible for jumping through all the hoops of providing coverage for your employees, you also need to be the main source of reporting such information to the Internal Revenue Service.

Applicable Large Employers (ALEs) Under ACA

applicable large employers

Applicable Large Employers (ALEs)

As a full-service employee benefits and insurance agency serving Southern California, Pontrelli, Timour & Associates understand that Obamacare has been driving you crazy as a business owner. Luckily, we are here to help guide ALEs through the obstacle course of providing the right benefits at the right cost, while advising you on resources to ensure your reporting requirements are executed on time. We are here to help ease the frustrations of the ACA, and help you contain costs, while keeping your valued employees happy with their benefit options.

Although many employers are not ALEs, thus not subject to this health care tax provision, the employers that do fall under the ALE definition must take action. If you are an applicable large employer you must use Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. These IRS forms are used to report the information about offers of health coverage and enrollment in health coverage for their employees.

Here are six key points ALE’s need to know about the information returns they must file:

Six Key Points for Applicable Large Employers (ALEs)

  1. Form 1095-C is used to report information about each employee who was a full-time employee of the ALE member for any month of the calendar year.
  2. Form 1094-C must be used to report to the IRS summary information for each employer, and to transmit Forms 1095-C to the IRS.
  3. ALEs file a separate Form 1095-C for each of its full-time employees, and a transmittal on Form 1094-C for all of the returns filed for a given calendar year.
  4. Applicable Large Employers that offer employer-sponsored self-insured coverage use Form 1095-C to report information to the IRS and to employees about individuals who have minimum essential coverage under the employer plan.
  5. The information reported on Form 1094-C and Form 1095-C is used in determining whether an employer owes a payment under the employer shared responsibility provisions.
  6. Forms 1094-C and 1095-C, or a substitute form must be filed regardless of whether the ALE member offers coverage, or the employee enrolls in any coverage offered.

If you are an applicable large employer (ALE) and you have yet to file these forms, you are already sailing in treacherous seas. Luckily, Pontrelli, Timour & Associates can help applicable large employers right the ship of their companies and return to calm waters. The goal of PT Benefits is to make sure that our client companies that are ALE’s avoid unnecessary IRS fines while keeping in compliance. At the same time, we want to help you recruit and keep the best employees by offering you’re the best benefits program options available.

PT Benefits Can Help ALEs

To learn more about how PT Benefits can help applicable large employers, please contact us today by calling 626-795-4138 today.

California Small Group Definition Will Hurt Business Owners In 2016

When the small group definition of businesses by the Affordable Care Act is reduced to 50 employees or less in 2016, many California business owners are going to be unfairly hurt. In California, the small group definition is going to remain 100 employees or less. As a result, any business with 50 to 99 employees will be damaged by qualifying under the small group definition. Pontrelli, Timour & Associates, Inc. want to help our clients navigate these dangerous waters.

The Sacramento Business Journal reports that Covered California will move forward with an expansion of the definition of small employers under state law. This counteracts the new federal law that halts the change. On October 7, 2015, President Obama signed into law the Protecting Affordable Coverage for Employees (PACE) Act which repeals the Affordable Care Act provision that on January 1, 2016 would have mandated expansion of the definition of “small employer” subject to insurance market reforms from employers with 1 to 50 employees to those with up to 100 employees. Yet, in California, state law defines businesses with 100 or fewer employees as small.

California Small Group Definition Damages

california small group definition

California Small Group Definition Hurts Business Owners

When it comes to being a small group, benefits administration is more costly with less benefits offered to your employees. In addition, small group benefits have higher deductibles for employees and a higher out of pocket expenses. Overall, there was a 26% increase for small group companies in terms of overall healthcare costs in 2015.

Pontrelli, Timour & Associates, Inc. does not believe the California state government is being fair to local business owners. Why should local business owners be penalized because their companies are based in California? Is this a good way to convince businesses to either stay or come to the state? Why would the California definitions be different from the national definitions when the Affordable Care Act has set the bar for benefits administration across the country?

Employment Data & California Small Group Definition

Based on California labor market employment data, roughly 14 percent of all California employment — 2.3 million employees — fall in the 51-100 segment, while roughly 2.4 percent of all California businesses—33,000 employers—fall into the 51-100 market. In California small group definition, an employer has historically been defined as 50 or fewer eligible employees for group health insurance purposes. Unless an employer has a grandfathered large group plan, employers with 51-100 full time equivalent employees who renew or purchase coverage in 2016 will be required to follow all small group regulations.

For large groups, insurance providers commonly use health status or claims experience, industry risk factors, employer size, participation and contribution levels, age/gender factors and composite ratings to determine premiums. With the mandatory migration, those falling under the new small group definition will no longer be allowed those variations. For example, the gender factor will no longer be permitted and age rating will be limited, with a 2016 ratio maximum of 3 to 1.

Age, Family Size & Geography Insurance Factors

Family size, too, will be a determining factor in adjusting premiums under the 2016 provisions with the California small group definition. Up to three children under 21 years of age may be charged a premium within a family, but any additional children can receive coverage at no additional charge. Geographic regions within the state that are currently prescribed may also be changed significantly, as well as premiums for tobacco use, which may be increased up to but not exceeding 50 percent.

Group Benefits Leader Helping Small Group Business Owners

When the ACA small group definition becomes effective in the state of California in 2016, groups sized 51-100 will for the first time fall under the same requirements that currently apply to groups sized 1-50. The California small group definition simply is not fair. As insurance brokers and group benefits leaders, the goal of Pontrelli, Timour & Associates, Inc. is to make sure our present-day clients and our future clients are not hurt by these healthcare problems.

 

IRS Resources To Help Employers Stay In Compliance With ACA Health Care Law Tax Provisions

ACA health care law is important when it comes to staying in compliance with IRS tax provisions. As an employee benefits and insurance agency in Pasadena, Pontrelli, Timour & Associates focuses on providing our clients and potential clients with essential information about the latest health care law tax provisions. With the Internal Revenue Service in charge of enforcing the Affordable Care Act, such information helps business owners stay in compliance with ACA health care law and avoid unnecessary pitfalls. Although the IRS enforcesACA health care law compliance, they also provide excellent resources to understand health care law tax provisions.

ACA health care law

ACA Health Care Law Compliance

For example, the IRS provides easy access to recorded webinars from IRS about the Affordable Care Act’s employer provisions and related tax requirements. Such webinars are well-designed essential information for employers. If you are a business owner or a tax manager for a company, these videos can be reviewed anytime to better understand how the health care law may affect your organization. The goal is help a business stay in compliance with ACA health care law.

ACA Health Care Law Tax Provisions

Each of the following ACA videos on the IRS Video Portal provides about 40 minutes of detailed information on the specific tax provision mentioned in the title. For example, two of the most effective videos that are worth the effort and time to watch are as follows:

  1. Employer Shared Responsibility Provision

This video helps a company determine their applicable large employer status, payments, and transition relief for 2015. Applicable large employers (ALEs) face the biggest hurdles.

  1. Employer-Sponsored Health Coverage Information Reporting Requirements for Applicable Large Employers

This video provides access to employer-sponsored health coverage information reporting requirements for ALEs, including who is required to report, what information you are required to report, and how to complete the needed forms.

All of the Internal Revenue Service recorded webinars about ACA updates and healthcare provisions can be found in the IRS Video Portal using the following tabs: Businesses and Non-Profits. After clicking on one of these tabs, a business owner only needs to select “Affordable Care Act” from the list of topics on the left side of the screen. Once selected, a list of recordings about the above provisions and other ACA topics will appear.

Pontrelli, Timour & Associates understands if the webinars can seem long and overwhelming. Even when done well, the healthcare information provided remains complex for the non-professional. As an experienced insurance agency, we understand the importance of improving your group benefits offerings while saving money and staying in compliance. Our customer-centric solutions and client services are the cornerstone of your business.

From years of experience, PT Benefits has learned that a happy employee is a productive employee. To access the help your company needs to ensure ACA health care law compliance and future success, please call 626-795-4138 and talk to one of our trained professionals.

Does Your Company Know About The Affordable Care Act’s Employer Shared Responsibility Payment?

Under the Affordable Care Act, applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are required to take some new actions. Applicable large employers (ALEs) particularly need to pay attention. ALEs are subject to the employer shared responsibility provisions. A goal of Pontrelli, Timour & Associates is to provide our clients and potential clients with the best information available about the employer shared responsibility provisions and all the requirements of the Affordable Care Act. After all, information is the power to chart the right course.

The Affordable Care Act’s Employer Shared Responsibility Payment

employer shared responsibility payment

Employer Shared Responsibility Payment

Whether an employer is an applicable larger employer in a particular calendar year depends on the size of the employer’s workforce in the preceding calendar year. This is a key distinction to remember. To be defined as an ALE for a particular calendar year, an employer must have had an average of at least 50 full-time employees (including full-time-equivalent employees) during the preceding calendar year. All types of employers can be ALEs, including tax-exempt organizations and government entities.

To prepare for 2016, if your organization is an applicable large employer, you need to keep track information each month in 2015, including the following:

  • Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable
  • Whether your employees enrolled in the minimum essential coverage you offered

PT Benefits can help our clients keep track of this information by providing supporting guidance and information.

Your company needs to track this information because you could be subject to an employer shared responsibility payment if your organization falls into either of these circumstances:

  • You offered coverage to fewer than 70 percent of your full-time employees in 2015 while at least one full-time employee enrolled in coverage through the Health Insurance Marketplace and receives a premium tax credit. The 70 percent threshold is for 2015, after 2015 this increases to 95 percent.
  • You offered coverage to at least 70 percent of your full-time employees and their dependents in 2015, but at least one full-time employee receives a premium tax credit because coverage offered was not affordable, did not provide minimum value or the full-time employee was not offered coverage. After 2015, this threshold increases to 95 percent.

 Pontrelli, Timour & Associates Can Help

Pontrelli, Timour & Associates understands if these requirements and logistics seem complicated. We can help you understand your company’s designation and take the steps to remain in compliance with the Affordable Care Act. Naturally, our goal is to help your company avoid an employer shared responsibility payment. To learn more and access the help you need, please call the group insurance experts at PT Benefits at 626-795-4138.Employer Shared Responsibility Payment

Do You Know How PPACA Affects Employers With 50 Or More Full Time Equivalent Employees?

In a recent update released on the IRS.gov website, the Internal Revenue Service offered Affordable Care Act guidance for large employers with 50 or more full time equivalent employees. Since some of the provisions of ACA apply only to large employers, which are generally those with 50 or more equivalent employees working full-time, the goal of this guidance is to let large employers know about deadlines approaching and compliance requirements that need to be met. As a group benefits and insurance leader for companies across Southern California, Pontrelli, Timour & Associates, Inc. offers this synopsis of the main points covered by the IRS in the recent update.

Large Employers Under The Affordable Care Act

50 or more full time equivalent employees

50 or more full time equivalent employees

If you have 50 or more full-time equivalent employees, your company is considered as an applicable large employers or ALEs. Applicable large employers are subject to the employer shared responsibility provisions and the annual employer information return provisions. For example, in 2016 applicable large employers will have annual reporting responsibilities in relation to health insurance. These reporting responsibilities detail whether your company offers health insurance to your employees and what kind of health insurance was offered in 2015 to your full-time employees.

Regardless of size, all employers that provide self-insured health coverage must file an annual return reporting certain information for the employees and other individuals they cover. The first returns are due to be filed in 2016 for the year 2015. Such filings have now become an inherent part of business tax filings with the IRS.

100 Or More Full Time Equivalent Employees

Effective for calendar year 2015, applicable large employers with 100 or more full-time or full-time equivalent employees will be subject to the employer shared responsibility provision. The shared responsibility provision goes hand-in hand with the possibility of having to make a shared responsibility payment. Like a penalty, the shared responsibility payment applies to employers that do not offer adequate, affordable coverage to their full-time employees. As a result of not offering such coverage, if one or more of those employees get a premium tax credit, the shared responsibility payment will be triggered for ALEs with 100 or more full time equivalent employees.

50 Or More Full Time Equivalent Employees

As for the smaller ALEs with 50 or more full time equivalent employees, but less than 100, the employer shared responsibility provisions will be activated from 2015 to 2016. Given this change and potential penalties involved, calculating the number of employees becomes of paramount importance. Any employers that have close to 50 employees or whose workforce fluctuates throughout the year should consult with a benefits administration expert to figure out exactly what they need to stay in compliance.

Although the basic calculation seems simple, it can be particularly complex given the natural fluctuations of a large workforce on an annual basis. The IRS describes the calculation needed:

To determine its workforce size for a year an employer adds its total number of full-time employees for each month of the prior calendar year to the total number of full-time equivalent employees for each calendar month of the prior calendar year and divides that total number by 12.

The Challenge Of 50 Or More Full Time Equivalent Employees

Did you know that employers with more than 50 cannot purchase health insurance coverage for its employees through the Small Business Health Options Program? With the SHOP Marketplace off limits, it becomes even more for employers with 50 more full time equivalent employees to work with a groups benefits provider like Pontrelli, Timour & Associates, Inc. that can answer your questions, lower your costs and help your company stay in compliance. To learn more about how PT Benefits can help, please call us today at 626-795-4138 to speak with a member of our customer-centric team.

PT Benefits Addresses The Challenges Of Filing IRS Form 5500 Under ERISA Plans

Filing IRS Form 5500 under ERISA plans can be challenging. Pontrelli, Timour & Associates, Inc. needs to let our clients and potential clients know that ERISA (Employee Retirement Income Security Act) plans with 100 or more participants at the beginning of the plan year are required to file an IRS Form 5500. An ERISA financial audit may also be required. Smaller plans with less than 100 participants at the beginning of the plan year may be eligible to file IRS Form 5500-SF. Certain welfare benefit plans with less than 100 participants at the beginning of the plan year may be exempt from filing IRS Form 5500.

IRS Form 5500 Filing Challenges

irs form 5500

Importance of Filing IRS Form 5500

The IRS Form 5500 must be filled no later than 7 months (or up to 9 1/2 months with extensions) after the end of the plan year. As a result, the necessity for filing plans for 2014 is rapidly approaching. A two and one half month extension may be obtained by filing Form 5558 with the IRS. PT Benefits. Rather than filing such an extension, it is better to work with an experienced group benefits leader like PT Benefits to file such forms.

Did you know that the penalties can be up to $1,100 per day for failure or refusal to file an IRS Form 5500? If you discover that you have not filed all your Forms 5500, do not wait for the government to find you! Please take advantage of the Delinquent Filer Voluntary Compliance Program. PT Benefits can help. We are available to prepare your annual Form 5500 and Summary Annual Report.

Questions About IRS Form 5500

It is essential to know how to define a participant in such plans. The IRS Form 5500 instructions define “participant” for purposes of filing in a confusing manner, but PT Benefits can help. An individual becomes a participant covered under an employee welfare benefit plan when one of the following happens:

  1. The date designated by the plan as the date on which the individual begins participation in the plan;
  2. The date on which the individual becomes eligible under the plan for a benefit subject only to occurrence of the contingency for which the benefit is provided; or
  3. The date on which the individual makes a contribution to the plan, whether voluntary or mandatory.

PT Benefits understands how intimidating all of the bureaucracy of IRS filings and ERISA plans and PPACA can be for any company. What is essential is to stay in compliance and not make careless mistakes. As a group benefits leader and a qualified insurance broker, PT Benefits can help with IRS Form 5500. To learn more about ERISA filings, please call 626-795-4138 and speak to one of our brokers.

PT Benefits Explains Employer Shared Responsibility Reporting Requirements Under PPACA: Code Sections 6055 & 6056

PT Benefits wants our clients and potential clients to understand that there are two types of employer shared responsibility payments, also known as pay or play penalties, under the Affordable Care Act (ACA). The first penalty under Internal Revenue Code (Code) Section 4980H(a) is the penalty for failure to offer health coverage.  Effective for plan years that began on or after January 1, 2015, a $2,000 annual penalty applies to a large employer that fails to offer at least 70 percent of its full-time employees (FTEs) health coverage. Employer Shared Responsibility Reporting Requirements mean serious business.

Penalties & Employer Shared Responsibility Reporting Requirements

Employer Shared Responsibility Reporting Requirements, PPACA

Employer Shared Responsibility Reporting Requirements

The second penalty under §4980H(b) is for the failure to offer coverage that is of minimum value and affordable. The Section 4980H(b) penalty is a $3,000 annual penalty assessed on a monthly basis, and applies to each FTE who is not offered minimum value affordable coverage by the large employer, goes to the Marketplace Exchange and receives an exchange subsidy for insurance he or she purchases through the Marketplace Exchange.  It is important to note that even if an employer offers coverage to 70 percent of its FTEs for 2015 and 95 percent of its FTEs for 2016 and beyond, the employer could still be subject to penalties under Section 4980H(b) if the coverage is unaffordable or does not provide minimum value.

What is even more troubling when it comes to Employer Shared Responsibility Reporting Requirements is that even if an employer meets the 70/95 percent threshold, it still faces the potential for the $3,000 Section 4980H(b) penalty for every FTE who is not offered coverage (i.e., the 30/5 percent safe harbor employees) if that employee receives an exchange subsidy for insurance he/she purchases through the Marketplace Exchange.

Code Section 6055 requires health insurance issuers and employers that sponsor self-insured health plans to report information concerning the type and period of coverage to the IRS and to the covered individuals.  Section 6055 reporting is intended to serve as verification that the individual has MEC for purposes of enforcing the ACA’s individual responsibility requirements.  Code Section 6056 requires large employers to provide information to the Internal Revenue Service (IRS) about whether MEC is offered to their FTEs and their dependents. The IRS will determine whether an employer owes a shared responsibility payment under Code Section 4980H and whether an employee is eligible for a premium tax credit on a Marketplace Exchange will use this information.

Employer Shared Responsibility Reporting Requirements – 6055 & 6056

Employers with 50 or more FTEs use Forms 1094-C and 1095-C to report the information required under Code Sections 6055 and 6056.  Form 1094-C is used to report to the IRS summary information for the employer and to transmit the Forms 1095-C to the IRS.  Form 1095-C is used to report information about each applicable employee. If an employer provides coverage through an insured plan, part of Form 1095-C will be left blank.  The insurance company will separately report on MEC for those individuals enrolled in fully insured plan options.

Recognizing the burden of these Employer Shared Responsibility Reporting Requirements imposed on employers, the IRS has provided a simplified reporting method for large employers that make qualifying offers of coverage to FTEs, their spouse and their dependents for all 12 calendar months of the reporting year. A simplified alternative that allows the employer to report without identifying or specifying the number of FTEs is also available for employers that offered, for all 12 months of the calendar year, affordable health coverage under IRS safe harbors.

Help With Employer Shared Responsibility Reporting Requirements

PT Benefits believe that employers should review the draft reporting forms and instructions to familiarize themselves with the types of information that must be provided under these Employer Shared Responsibility Reporting Requirements.  If such forms and instructions are too complicated, PT Benefits will help our clients navigate this maze of PPACA bureaucracy. To learn more about how PT Benefits can help your company with Employer Shared Responsibility Reporting Requirements and whether your company qualifies for an IRS safe harbor, please call 626-795-4138 today.

2015 ACA Mandate Changed The Playing Field For 100-Plus Company Employers With 2016 To Come

aca mandate

Affordable Care Act & Your Company

In 2015, the ACA mandate and huge potential penalties for businesses that fail to provide medical coverage for their workers changes the playing field for 100-plus company employers. From requiring employers to provide medical coverage to spurring the creation of new models for how health insurance is structured and sold, the effect of the Affordable Care Act on business owners will is becoming increasingly clear. In 2015, if you are a larger employer and you fail to provide health insurance, your company will have to pay a penalty for each employee that does not receive coverage.

 The 2015 ACA Mandate

As insurance brokers and benefits program managers, Pontrelli, Timour & Associates understands that larger companies have become more conscious of the minimum value required by the ACA to avoid having to pay penalties. The ACA has prompted such employers to reexamine how they offer insurance. Some midsized businesses are switching from traditional, fully funded commercial insurance plans to self-funded plans, in which they pay employee claims directly. Whenever such decisions are made, the importance is to have a benefits plan management professional to help.

Is Your Company Being Penalized For The ACA Mandate?

Self-funded plans allow businesses to see the overall claims from their workers and tailor employee wellness plans to serve those workers. The efficiencies of self-funded plans are primarily attractive to businesses with hundreds of workers, but now are attracting firms in the 50- to 70-employee range. On Jan. 1, 2015, employers with 100 or more workers were forced to pay a penalty if they don’t provide insurance to at least 70 percent of full-time workers.

The 2016 ACA Mandate

In 2016, the mandate will be expanded, so that all businesses with the equivalent of at least 50 full-time employees will have to pay the penalty if they don’t provide insurance to at least 95 percent of their full-timers. Pontrelli, Timour & Associates is focused on helping such mid-sized companies find the best plans that make the most sense for their companies.

Is You Company Ready For The ACA Mandate?

Pontrelli, Timour & Associates understands how making such specific choices remains challenging for most business owners. By having a benefits program expert on your team, such choices can be made precisely from the vantage point of proven experience. If you want to know more about how PT Benefits can help your company with ACA challenges, please call 866-782-9899 or fill out our handy contact form for a free consultation.

 

 

 

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.