Over the last year we watched multiple unsuccessful attempts to repeal and replace the Patient Protection and Affordable Care Act (“ACA”). Now, ACA’s reporting deadlines are merely months away and the chance of repeal is low. Employers who are “applicable large employers” (“ALEs”) and Employers who offer self-insured health plans must comply with ACA’s reporting requirements or face penalties.
What’s an ALE? An ALE is an “applicable large employer” pursuant to the ACA’s special calculation. It means you have at least 50 full-time employees (including full-time equivalents). The ACA defines a full-time employee as one who averages 30 or more hours of service per week.
What’s the relevance of being an ALE? An ALE must comply with the Employer Mandate and ACA’s Reporting Requirements or face penalties.
What is the Employer Mandate? The law that says an ALE must offer affordable coverage to substantially all full-time employees and their dependents, or face potential penalties.
What is the ACA Reporting Requirement? The law requires that ALE’s report to the IRS the offer of coverage made to full-time employees. The IRS uses this information to determine compliance with the Employer Mandate. Employers who offer self-insured health plans also must report to the IRS those employees who enroll in the self-insured coverage.
What do I tell Employees? An Employer must provide to each employee reported on, a “statement” or a copy of the Form to be filed with the IRS.
What is a “self-insured” health plan? A self-insured plan is one where you, as the employer, are paying the claims, as opposed to an insurer.
What Forms must be provided to Employees?
What are the ACA Reporting Deadlines?
What Forms must be filed with IRS?
What are the Penalties for Failure to Report?
Where do I find the Forms and Instructions for Filing?
Note: If you are using a vendor to complete your forms, please double check for accuracy. The IRS will ultimately hold the employer responsible, not the vendor.