Thursday, August 25, 2016 at 10:17 AM
Are you staying compliant with the Affordable Care Act? Here are some helpful tips to help your business stay current with the changing rules regulations and tackle the ACA head on. The ACA mandate only applies to large employers - large employers are classified as those with 50 or more full-time employees working an average of 30 hours per week or more. These employers must offer health coverage to all full-time employees and their dependents or they will be forced to pay a penalty.
Any employer who fails to comply will be subjected to one of two penalties. First, employers who do not offer coverage to at least 95% of their full-time employees will be fined $2,160 per employee. Second, companies that offer unaffordable health insurance will be fined $3,120 per employee.
Some employers have now started to receive their subsidy notices from the exchanges. However, these notices are limited as they rely on the employee providing their employers address when they get coverage through the exchange - if that information is not provided then they might not get the notice.
These notices are completely separate from the IRS assessment of fines. Should a fine be issued the IRS will send out a preliminary notice to employers of their potential liability and employers will be given a change to respond before monetary payment is officially assessed.