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16 Sep

Understanding Your Responsibility Regarding the Affordable Care Act (ACA)

UnderstandingACAThe Affordable Care Act (ACA) requires many employers to offer health insurance to a certain classification of employees or be subject to fines. Your company’s obligations, along with deadlines for meeting the requirements of the new law, are determined by your company’s status as an Applicable Large Employer (ALE) which is determined by the number of average Full-Time Equivalent (FTE) employees for the prior year.

  • Week – 30 or more hours
  • Month – 130 or more hours

When the Affordable Care Act (ACA) went into effect, life got a lot more complicated for your company. Which of the new IRS forms will you need to file? What are form 1094-C and 1095-C?  How many full-time employees do you really have? Will you face fines for failing to provide affordable healthcare coverage?

If your Average Full-Time Equivalent Count is: …Then Your Compliance Date is:
   
  100.00 +   Jan. 1, 2015 Unless:Your plan has a non-January 1st renewal date AND

You haven’t changed your renewal date since Dec. 27, 2012;

AND

at least one of the following is true:

  • 33% of your entire workforce receives an offer of coverage; or
  • 50% of your full-time workforce receives an offer of coverage; or
  • 25% of your entire workforce is actually covered; or
  • 33% of your full- time workforce is actually covered.

If you meet all of these criteria, THEN you may wait until your renewal date in 2015 to comply.
  50.00 – 99.99   Jan. 1, 2015

 Unless:You did not release employees in order for your calculation to be under 100 Full-Time Equivalents; AND

You keep offering the same or better coverage as you were offering on Feb. 9, 2014; AND

You continue to fund at least 95% of the premium share you funded on Feb. 9, 2014

If you meet all of these criteria, THEN you may wait until January 1, 2016 to comply.
  0 to 49.99   N/A Groups with an Average Full-time Equivalents of 49.99 and fewer are not required to comply with the Employer Mandate as they are not an Applicable Large Employer.  All employers must maintain current and up to date documentation of their status as an Applicable Large Employer and therefore track and document their FTEs.

Many companies already rely on us to manage their key payroll functions. Now, our clients can rest assured knowing that we’ll provide you with the resources you need to help you stay in compliance with healthcare reform. We have partnered up with Sage/Paychoice to provide you with ACA software.

You can purchase our ACA software which you would maintain. We would produce the forms 1094-C and 1095-C to be distributed to your employees at year end.

Alternatively, you can:

  • Have your benefit provider maintain your records and file the necessary forms.
  • Have us suggest a benefit provider, if you do not have health insurance.
  • Look into your own ACA compliance software or benefit providers and we will provide, for a small fee, the payroll reports for you to use.

Please contact us at 617-657-0057 or by email Jill@granitepayroll.com for more information.

Granite Online is a powerful web-based payroll solution designed to streamline payroll operations while enhancing flexibility, security, and control. This dynamic product enables you to maintain control of your payroll data while utilizing our payroll expertise. With 24/7 convenience, Granite Online allows instantaneous e-transfers, printing of live checks and payroll reports, and tracking of human resource data. This easy-to-use payroll product lets you know what’s happening in real-time, so you can minimize costly productivity issues. Whether your company is large or small, local or nationwide, our payroll specialists are at your service.