Important ACA Questions

  • Do I need to worry about ACA compliance if I already offer coverage to all of my full-time employees?

    From a compliance perspective, if you offer minimum essential coverage providing minimum value that is affordable to all your ACA-defined full-time employees and their dependents, you shouldn’t be exposed to penalties under § 4980H(a) or (b). But accurately reporting your employee information can be more difficult than it sounds.

    Using the right measurement practices and tracking dates of coverage is crucial to ensuring that in addition to your plans being compliant, your measurement methodology identifies all employees eligible for coverage under the ACA, and that you offer coverage on time. Something as simple as counting full-time employees can be tricky when you account for leaves of absence, gaps in employment, employees transferring between multiple entities, measurement periods, and plans.

    Even if you fulfill your compliance obligations, you could still incur penalties for filing Forms 1094-C or 1095-C with incomplete or inaccurate information, or for filing late. Employers are required to report to the IRS (and their employees) the coverage they offered. Employers must furnish Form 1095-C to all their full-time employees by January 31st.

    The forms detail the type of coverage offered, if any, and explain any reason an employer may have had to not offer coverage. This means you must choose from over 50 code combinations to identify which one correctly categorizes a particular employee’s situation in a particular month, for each month of the year. Failure to accurately, completely, and timely furnish Forms 1095-C and 1094-C can result in a penalty of $250 per form.

  • If I already signed up for an Affordable Care Act solution, do I have enough support to avoid an audit?

    Few solutions provide a level of service as comprehensive as our Optimal ACA solution. If you have flawless data and enough ACA expertise to make compliance a non-issue, an out-of-the-box solution may be enough. But we have nearly 20 years of experience with data and complex statutory requirements, and we know that most data is messy at best. Statutory compliance requires precise analysis, and relying on a software-based solution alone poses a significant risk.

    Time is running out, so if you have concerns about your ACA situation, contact Tax Credit Co. today.

  • How important is it that I get Form 1095-C lines 14 and 16 right?

    It is vitally important that you include accurate information on your forms, or you could face a $250 penalty for each incomplete submission. A robust ACA solution will provide all the services necessary to produce a complete Form 1095-C in an accurate and timely manner. We take the guess-work out with data validation, precise measurement of employees, eligibility determinations, plan and offer analysis, and of course, form production

  • Why not just hire sometime to fill out the forms for me?

    ACA compliance is about more than filling out forms. Forms 1094-C and 1095-C summarize your company’s health coverage offerings for the year at the business and employee levels, respectively. To accurately complete the forms, a full year’s worth of analysis must be performed using data files from multiple sources and multiple years. You need a dedicated team to handle the complexities and ensure you’re not just filling out forms, but filling them out correctly.

  • How will the IRS audit ACA compliance ?

    The IRS has not yet issued guidance on how it will audit ACA compliance. Based on our experience dealing with IRS audits under WOTC and R&D Credits and IRS audit procedure guidance for similar programs such as COBRA, we envision that the IRS will request the methodology employed for identifying full-time employees, measurement determinations, and proof of offers of coverage and enrollment or waiver decisions, tying it all back to the information reported on Form 1095-C, as filed. In fact, estimates put revenues from ACA audits in the range of $9 billion in 2016, with increases up to $20 billion in just 7 years. That’s why it’s so important to have a team of experts on your side.

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