Health Reform: Is Your Company Ready for the New Reporting Requirements?
In 2016, employers with at least 50 full-time employees (FTEs) must provide Forms 1095-C to their employees and to the IRS. This new requirement applies to both insured and self-insured medical plans. The forms require, in part, tracking per each month in 2015 per each FTE:
- the tier of health plan coverage offered (e.g., employee-only, employee+spouse, or no coverage offered);
- the self-only premium an employee must pay for the lowest-cost plan that provides minimum value; and
- the reason why an employer would not be subject to a penalty for a particular month (e.g., employee is in a waiting
period or the affordability safe harbor applies).
This individualized tracking generally requires the assistance of an outside vendor. There are payroll vendors, benefit administration vendors, and independent vendors providing this service. Employers with payroll vendors and/or benefit administration vendors currently in place may still need to purchase this service in addition to what they already have.
Implementation can take up to 3 months. Some vendors are no longer accepting new clients. Therefore, we recommend that employers prepare ASAP if they have not already. Waiting until the last quarter of 2015 may make compliance impracticable.
Penalties for failure to file were recently increased. They can range from $50 per form (with a $500,000 annual maximum) to $250 per form (with a $3M annual maximum).
Total Benefit Solutions Inc., has partnered with multiple industry best vendors to assist our clients with ACA compliance reporting and can help you find the compliance package that is the right fit for your needs. Please call your Total Benefit Solutions Inc., Account Manager at (215)355-2121 to get more information.
Click the link below to download this bulletin along with our Employer Reporting Guide for Large Employers: 6055 and 6056 Reporting for Large Employers-
Is Your Company Ready for the New Reporting Requirements – 071515R