Do I Still Need to Comply with The ACA?
Employers may be confused with all of the bluster and proposals to “repeal and replace” or perhaps “amend” the Affordable Care Act. What parts of this complex law do employers and their employees still need to comply with?
In offering important relief to individuals, the Internal Revenue Service has relaxed enforcement of the individual mandate and did not require taxpayers to report whether they had health insurance coverage on their 2016 tax returns.
However, the IRS has not relaxed enforcement of the employer mandate. This has been confirmed in a release from the Department of Labor. Although the IRS has acknowledged glitches in the ACA reporting system, the IRS has confirmed that an applicable large employer is still subject to an employer shared responsibility payment if it fails to offer coverage to 95% of its full-time employees or has a full-time employee who obtains coverage on the insurance marketplace and receives premium assistance or a tax credit, and the employer’s coverage is not affordable or did not provide minimum value.
Large employers should continue to offer minimum essential coverage to their full-time employees to avoid penalties and to track offers of coverage in order to comply with reporting requirements on IRS Forms 1094 and 1095.
Although the individual mandate has been “non-enforced”, It’s business as usual on the compliance front for employers- especially those subject to the employer mandate and shared-responsibility payments for non-compliance.